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Trump's Policies May Slash Growth, Spike Inflation

8/16/2025

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Summary

Story summary

Moody's Analytics reports President Trump's economic policies may reduce U.S. growth by 0.4% annually, averaging 1.7% during his term.
Inflation is expected to increase by nearly 0.5% each year, peaking at 3.1% in 2026, driven by tariffs and immigration policies.
In the absence of these policies, growth could remain positive, and inflation might reach the Fed's target earlier.

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Story summary

Moody's Analytics reports President Trump's economic policies may reduce U.S. growth by 0.4% annually, averaging 1.7% during his term.
Inflation is expected to increase by nearly 0.5% each year, peaking at 3.1% in 2026, driven by tariffs and immigration policies.
In the absence of these policies, growth could remain positive, and inflation might reach the Fed's target earlier.