Inflation is slowly moving back to what’s considered a more sustainable pace, but for many Americans, it’s hard to take solace: The post-pandemic spike in price hikes drastically increased the cost of living.
Both Vice President Kamala Harris and former President Donald Trump have pledged to bring those costs down. But some economists warn that the candidates’ aims — including an initial economic policy laid out Friday by Harris and the economic-related statements made in recent months by Trump — could push prices higher … and in the latter’s case, possibly much higher.
Both candidates’ plans would probably raise the deficit and increase demand, including through government spending and tightening the labor market, Joe Brusuelas, RSM US chief economist, said to CNN via email.
But Trump’s plan, or what he’s so far released of it, presents more risks, Brusuelas said. “Both likely inflation and the risk to permanently higher inflation are greater with the Trump proposal.”
