Economist: The more radical Trump's policies are, the greater the possibility that the US economy will fall into stagflation

U.S. markets reacted enthusiastically to Trump's victory, but the trade has since eased. Economist Phil Suttle offers another scenario. His outlook shows that the more aggressively Trump pursues policies such as deportations and tariffs, the more likely the U.S. will fall into a stagflation panic in the coming years. If immigration is cut off and workers are deported, the labor force could lose all growth momentum or even shrink. Suttle estimates that with tariffs, economic growth could stagnate or even reverse in 2025 and 2026. At the same time, both worker shortages and tariffs could push up prices, potentially pushing inflation to more than 3% a year. Suttle believes that Trump's more aggressive policies could exacerbate these effects. (Jinshi)