PIIE

With unified Republican control of the White House and Congress, US President-elect Donald Trump is poised to pursue radical economic policies. By undermining the independence of the Federal Reserve, enacting massive tax cuts, and loosening cryptocurrency regulations, he risks triggering an inflationary surge.

Now there is little doubt that Trump is going to impose much higher tariffs perhaps with the aid of Congress.

At this writing, a week after the US national elections, it appears that President-elect Donald Trump’s Republican party will gain control of both chambers of Congress, enabling him to enact his economic agenda.

China's current stimulus plan is still unfolding.

The damage to the US economy would also be incalculable, except in a later damage assessment. By then it would be too late.

The new British prime minister, Sir Keir Starmer, led the Labour Party to an impressive victory in July, capitalizing on Britain’s economic problems and mounting backlash over its troubled exit from the European Union.

A new PIIE working paper finds that, on the contrary, these policies implemented together would harm the US economy while benefiting most others around the world.

The world's economy remains on track for steady growth in 2025, but the outlook could shift depending on the results of the 2024 US elections.

Colleagues at the Peterson Institute for International Economics have already explained the impracticality of trying to fund the government with the 10 to 60 percent tariffs that former president Donald Trump has proposed.