New York University Stern School of Business professor of Economics Nouriel Roubini — also known as "Dr. Doom" — joins Catalysts to analyze the inflation and economic outlook under President Trump, discussing the potential risks to US economic growth.
Roubini observes that before Trump's election victory, the economy was trending toward a no-landing scenario rather than the soft landing many had anticipated.
"The economy is hot, inflation has remained sticky," he tells Seana Smith and Madison Mills. While Roubini acknowledges that some Trump administration policies, like deregulation, lower taxes, and increased fossil fuel production, could promote growth and reduce inflation, other policies might have opposite effects.
He points to immigration, trade, and tariffs as "policies [that] have more of an impact in the short term," noting that the growth-promoting policies could take at least a year to show effects.
Given this environment, Roubini says he is "not surprised" that the Federal Reserve is hesitant to lower interest rates, suggesting they might "increase policy rates rather than reduce them this year." He warns that such rate increases — inching away from the Fed's 2% inflation rate target — could put the central bank on a "collision course" with Trump.
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This post was written by Angel Smith