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President-elect Donald Trump's proposed economic policies have raised inflation concerns and could potentially impact markets negatively. Evercore ISI Chief Strategist for International Affairs and Public Policy Sarah Bianchi joins Asking for a Trend to discuss the potential market implications of his agenda.
Bianchi reflects on Trump's first term, noting that his initial focus on corporate tax cuts was something "the market really welcomed," while more controversial policies around trade and immigration that the market was "uncomfortable with" came later in his presidency. However, she points out that "we see the reverse" this time, with trade, immigration, and tariff policies likely to be implemented immediately, adding that the markets, specifically the bond market, are "very jittery" about these prospects how they could impact the deficit.
"It's gonna be hard for him [Trump] to take the actions that he's looking at without making the market a little bit nervous," Bianchi explains. Regarding his tariff policies, she anticipates a more targeted approach, noting she doesn't believe they will be "universal across the board particularly given the concerns about inflation."
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This post was written by Angel Smith