As the presidential election looms just 18 days away, Vice President Kamala Harris and former President Donald Trump have presented competing economic proposals to win voter support. Harvard Kennedy School of Government professor Jason Furman joins Catalysts to analyze the potential economic impacts of these proposals.

Furman, who served as Chairman of the Council of Economic Advisers under President Obama, notes concerns with a potential Trump presidency, describing it as "quite a risk" to the US economy. His worries center on Trump's evolving stance on tariffs, which has escalated from 10% to potentially 50%. "That would just unleash a trade war," Furman warns.

Regarding monetary policy, Furman emphasizes the Federal Reserve as "such an incredibly important institution." While he believes dismantling the Fed would be unlikely within a four-year term, he expresses concern about long-term risks if initiatives started under Trump were continued by a successor.

"Just about every analysis that I have seen... have found that Donald Trump's plan would spend considerably more than Harris's would," Furman states.

"I think more importantly, there's a lot of businesses who think he doesn't mean what he says on tariffs, on immigration, on government spending, on the Fed," he explains. However, Furman believes there's a 20% chance Trump could implement these plans, a probability he believes "is worth paying attention to."

Catch Jason Furman also weigh in on Larry Summers' comments and discern whether the Fed's September rate cut was "a mistake."

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Angel Smith