What Would Trump Have To Do To Defeat Inflation? Maybe Nothing | Global News Avenue

The public shows signs of impatientness about President Donald Trump’s performance of his campaign promises, but it may gradually reduce inflation on its own.

A CNN poll conducted last week showed that 62% of adults in the United States believe President Donald Trump is not enough to lower the price of daily commodities. Inflation heated unexpectedly in January, 3% year-on-year (Compared to about 2% before the pandemic).

Trump, wins a wave of voters in November elections Anger at inflationpromises to “reduce prices immediately” and “end inflation” His first day.

Inflation may fall by itself

Although the cost of living remains high, forecasters have some reasons to believe that inflation is gradually disappearing this year, and this year it is gradually disappearing.

On the one hand, the number for January may be partly Seasonal adjustment data. For another housing cost, it is the biggest driving force for inflation. Seriously getting worse More than the recent past.

The Congressional Budget Office program’s inflation rate measured by personal consumption expenditure will drop from 2.5% in the previous year to 2.2% in 2025. Federal agencies expect inflation to reach the Fed’s target of 2% by 2027. The Economic Think Tank Conference Committee predicts that by the end of this year, inflation will gradually fade to 2%.

But Trump can stop the process

These forecasts have at least one major warning: The conference committee noted: “The unpredictability of current government policies may be huge in the prospects.”

Trump retains forecasters and financial markets Guess his economic scriptespecially whether he would impose heavy tariffs he said he would have on U.S. trading partners. Many economists believe that these tariffs will increase inflation as merchants raise prices to consumers.

The central alliance also said inflation could heat up again if tariffs raise prices, which could raise consumer inflation expectations and lead to Self-fulfilling prophecy Higher price.

As Trump promised, no major forecast would predict a price drop at any time in the foreseeable future. Wide price drop or Defuseusually only happens when the economy is in severe trouble, such as the Great Depression, which is The Fed actively tries to avoid.