If you have your eye on a nice new laptop or whatever, keep an eye on Trump’s threats to jack prices higher. Trump has already said he’s place a 60% tariff on imports from China:
Over the weekend he spoke in an interview, on Fox’s “Sunday Morning Futures.”
- confirmed he is considering a plan to impose tariffs of 60% or higher on Chinese goods in his potential second term
- “We have to do it,”
- said he might even go higher: “Maybe it’s going to be more than that.”
- has also said he would impose a blanket 10% tariff on all U.S. imports
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Obviously this has implications for the inflation outlook also. There is absolutely zero that a higher Fed interest rate could do about prices jumping a lot higher if this happens, but what the Fed can, and will, do is raise rates to drive down demand and stop inflation expectations rising, as best they can.
Anyway, all speculation at this stage. Although Trump is basically a lock to win the Republican nomination when the time comes for Biden vs. Trump it’ll be a contest.