Americans are worried about the economy and President Donald Trump’s policies are raising inflation despite his campaign promises, Rana Foroohar, CNN’s global economic analyst, said Friday.
“His policies from tariffs to limits on immigration, rounding up migrants, whether you like it or not, more immigration has been responsible for lower wage inflation, and just the general geopolitical stress and uncertainty is actually increasing risk premiums. It’s raising inflation,” she said.
Consumers became less confident in the economy between January and Feburary, a report from the University of Michigan found. “People were concerned about spending and buying and prices because of tariffs,” said CNN correspondent Vanessa Yurkevich.
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“Folks feeling more pessimistic about the economy, that is a turn from how they felt over the summer, when people were feeling pretty good about the direction of the economy,” she added.
“Could Trump’s lack of apparent focus right now on lowering prices come back and bite him sooner rather than later?” asked CNN host Pamela Brown.
“Well, 100 percent,” Foroohar said, “and this gets into one of the challenges for the Trump administration, but it was also something that Biden struggled with when you want to make a fundamental change in the economy, when you want to shift to an economy that, frankly, for the last 50 years has been all about lowering prices and jacking up stock prices, and suddenly you want to change it to something that’s much more about producing things at home, creating creating better jobs. That’s a great goal, but that’s something that takes years and decades, and during that time, there are periods of real pain, and they have to be well managed.”
“I think that there’s a sense that with all the sort of high speed moves this administration is making, that the markets are really not sure how this change is going to be managed, both at an economic or a political level,” she added.
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