The Return of Inflation: Potential Consequences of Trump's Win in the 2024 Elections
Recent comments by Mohamed El-Erian, the Chief Economist at Allianz, highlight that a possible victory of Donald Trump in the 2024 presidential elections could lead to a rise in inflation in the United States. According to El-Erian, there is a clear correlation between Trump's political decisions and economic instability, particularly the increase in prices for basic goods and services.
El-Erian noted that Trump’s previous administration already faced a significant deterioration of the economic situation, and if Trump returns to power, similar economic consequences might repeat. He emphasized that instability caused by unpredictable political decisions could contribute to rising inflation, negatively impacting the purchasing power of the population.
Investors and analysts have already started to incorporate potential risks into their economic forecasts, considering that Trump might revive his aggressive trade policy and erratic tax changes that created market uncertainty during his previous presidency.
El-Erian also expressed concern about potential conflicts in international trade if the U.S. course shifts under a newly elected Trump. This could lead to new tariffs and customs duties, further intensifying inflationary pressure. In his opinion, the current U.S. economy is not equipped to withstand another shock.
The economist warned investors to closely monitor the situation as the elections approach, as any changes in policy could significantly impact global economic trends.
