The Trump administration's barrage of tariffs on key U.S. trading partners and ongoing crackdown on immigration are likely to result in higher prices for American consumers and businesses, according to Wall Street analysts. Economists with Morgan Stanley Research said in a report on Friday that they expect inflation in 2025 to rise 2.5%, up from their previous forecast in December of 2.3%. Another key gauge that strips out volatile food and energy costs is now projected to reach 2.7%, up from 2.
Main Idea: Some economists say President Donald Trump’s tariffs and immigration crackdown could push U.S. inflation higher in 2025.
Key Points:
Trump’s tariffs and tighter immigration could push prices higher, making groceries, goods, and services cost more for households and small businesses. Higher inflation may also keep the Fed from cutting interest rates, leaving borrowing costs elevated.
No clear positive impact identified.
Rate how each entity in this article affected the American people.
Central political actor whose tariffs and immigration stance are presented as key drivers of the inflation outlook.
Its analysts’ updated inflation projection is a major supporting point in the story.
Mentioned as the source of upcoming inflation data release.
Cited as the source for historical inflation data used in the article.
Cited as the source of a poll of economists about expected rate cuts.
Comments here are the same thread shown when this article appears in The Pulse.
No comments on this article yet.
Sign in to comment