Much has been said about the incoming Trump administration’s proposed policies, and with the government on the verge of another shutdown, understanding where the economy is headed has become even more crucial.
In this clip from Yahoo Finance's Opening Bid, Federal Reserve Bank of San Francisco CEO and President Mary Daly highlights what to focus on when a new administration takes office: “They always come in with a slate of programs and policies. And those slate of programs and policies can often interact with each other. And what matters is the net-net effect.”
The core policies behind President-elect Donald Trump's second administration are centered on tax cuts, deregulation, and a border policy at this time. Daly notes that these policies may have “offsetting effects."
“Tax cuts typically spur growth. Immigration might change how many are in the labor force. Tariffs could raise costs, but they could also spur new domestic investment and deregulation,” Daly tells Yahoo Finance executive editor Brian Sozzi.
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Daly also emphasizes the importance of timing: “If the changes are drawn out over a four-year period, they're much more muted effects than if they all happen like a light switch. But policy rarely changes like a light switch."
Catch Brian Sozzi's full interview with Mary Daly by clicking here.
This post was written by John Tejada.