Hacker News Reader

Comment by akmarinov | Hacker News Reader

[flagged]

Trump's policies (lower taxes, higher tariffs & trade wars) are highly inflationary. Interest rates will have to go up during a Trump presidency to compensate.

He'll probably see that as an issue for the president after him

From the looks of things the inflation has happened under the current president, and the next one will have to fix it.

The current annual inflation rate is 2.97%.

Here[0]. Look at post-2020. The rate might have now reduced a little, but it's still stacked on top of the previous higher inflation since 2020.

[0] https://fred.stlouisfed.org/graph/?g=WAVo

But "fixing" that with deflation would be a cure worse than the disease.

That seems like a separate topic.

It's kind of moot anyways, neither side is advocating for deflation. The 2022 inflation is baked into prices now and it's never coming out unless something really bad happens to the economy.

Economists are kind of mixed on whether deflation is really bad. Periods of deflation in the past have always occurred during really rough economic times. Was the deflation cause or effect? It's hard to tell, but those times were so bad nobody is anxious to find out.

> It's kind of moot anyways, neither side is advocating for deflation

Okay, but you brought up how Trump/Vance would increase inflation. It's already increased under Biden/Harris, unlike Trump/Pence, so now it's moot?

Talk about deflation is moot. Nobody is suggesting that.

That seems to be how a lot of politicians across the world tend to see the issues they cause, unfortunately.

> With Trump (and Silicon Valley behind him) pushing to lower interest rates - if he was to win, it's possible to boost the tech job market

The Fed is independent of the Executive in the United States.

On paper.

https://www.binance.com/en/square/post/2024-06-11-us-senator...

He's on top of that - https://www.wsj.com/economy/central-banking/trump-allies-fed...

Per the rules yeah. But if you don’t think [https://apnews.com/article/2a21e92ed9129e91e713495c9ef50050#....] kept interest rates lower for longer, making the current mess worse I don’t know what to say.

> The Fed is independent of the Executive in the United States.

That was high on Trump's list of things to change.

Reply on news.ycombinator.com