Since Donald Trump's reelection into the White House, stock markets (^DJI, ^IXIC, GSPC) have been on an upward trend. But will his administration deliver the economic impact that investors and voters anticipate?

At Yahoo Finance Invest, Yahoo Finance Senior Reporter Jennifer Schonberger sat down with Bridgewater Associates co-chief investment officer Karen Karniol-Tambour to explore these questions in detail.

Together they discuss various aspects of the economy, which Karniol-Tambour believes "has real room to run." The two also cover Trump's proposed policies and their economic impact, inflation concerns, the Federal Reserve's likely monetary policy path in 2025, and investment strategies in the current economic climate.

"Markets are basically telling you more or less, Donald Trump means somewhat good for growth, somewhat inflationary," Karniol-Tambour states. However, she raises the crucial question of "what will they actually be able to implement," particularly regarding proposed policies like tariffs.

"These are definitely bigger tariffs than we got in 2016, so the impact's going to be larger," she adds. "The biggest thing you don't know is what the second and third consequences are going to be. In other words, it's not just that we put tariffs on others; they can also put tariffs back on us," though she notes that the US is "less vulnerable" to tariffs.

Regarding market impact, Karniol-Tambour explains, "Look, I think that when you get a new set of policy regimes, there's always a possibility of volatility because you just don't know exactly how the policies are going to hit. And so I think that Trump's presidency, in many ways, the type of policies he's doing were already in the air and were going to happen with or without him."

To see every interview from Yahoo Finance Invest, click here.

This post was written by Angel Smith