If Donald Trump is reelected, mortgage rates are expected to rise sharply, potentially crippling the housing sector already struggling with inflation. Economists including Nobel laureates have expressed their worry that Trump’s policies could spark renewed inflation, complicating economic recovery efforts. Current economic indicators suggest that while the economy is stable, fears of recession persist as the election approaches.
Economists predict significant shifts in the US economy if Donald Trump is elected again. Capital Economics anticipates that mortgage rates could escalate sharply, with a potential increase in Fed funds forecast by 50 basis points. This move could have dire consequences for an already beleaguered housing market, which is grappling with inflation and rising mortgage costs, particularly in major metropolitan areas.
The economic landscape in the United States is under scrutiny as the upcoming presidential elections draw near. Current inflation trends and mortgage-related challenges are at the forefront, causing concern among analysts about the stability of the housing sector and the overall economy. Notably, Nobel Prize-winning economists have voiced alarm over Trump’s proposed policies, fearing they may reignite inflationary pressures and prolong economic recovery.
Should Donald Trump regain the presidency, the consensus among economists suggests a potential surge in mortgage rates and heightened inflation risks, which could exacerbate the ongoing housing crisis. With their concerns firmly rooted in Trump’s economic policies, economists highlight the possible long-term repercussions for the US economy, emphasizing the need for vigilance in the months following the election.
Original Source: m.economictimes.com
