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Economists: The more aggressive Trump's policies are, the greater the possibility of the U.S. economy falling into stagflation.
On January 9th, Jinshi Data News reported that the US market reacted enthusiastically to Trump’s victory, but since then, this trade has eased. Economist Phil Suttle presented another scenario. His outlook shows that the more actively Trump implements policies such as deportation and tariffs, the greater the possibility of a stagflation panic in the United States in the coming years. If immigration is cut off and workers are expelled, the labor force may lose all rise motivation and even shrink. Suttle estimates that in addition to tariffs, economic rise could stagnate or even reverse in 2025 and 2026. Meanwhile, labor shortages and tariffs could push up prices, possibly pushing the inflation rate above 3% per year. Suttle believes that Trump’s more aggressive policies may exacerbate these effects.