Macquarie analysts reiterate that “Trump 2.0 will be a more inflationary policy regime”

I posted last week on Macquarie pointing to populist economic policies as “inflationary by design“, and that the Fed’s easing cycle may be shallower than presumed:

• while US inflation may continue to stay low in the next few months and allow the Fed to start easing in September, once ‘popunomics’ is invoked, inflation will be a feature of the system

In a note on Monday (more here) analysts at the investment bank reiterated:

• Trump’s expected policies are likely to be more inflationary

• “Trump 2.0 will be a more inflationary policy regime, given restricted immigration, higher tariffs, and the extension of the Tax Cut and Jobs Act of 2025”

• forecast US Treasury yields and the dollar to be higher
• Trump regime may restrict immigration … the removal of low-cost labor supply may put upward pressure on wages
• federal deficit … also likely to expand under Trump

Agree / disagree? If comments could be non-partisan that’d be great. Like this dude says:

This article was written by Eamonn Sheridan at www.forexlive.com.