Analysts Caution on Trump's Economic Strategy Risks

JPMorgan's David Kelly and other financial analysts warn that President-elect Donald Trump's aggressive tariff plans could slow economic growth and increase inflation globally. Neel Kashkari of the Minneapolis Federal Reserve is optimistic about inflation trends moving toward the 2% target, with recent consumer price data supporting this view. However, Kashkari also expressed concerns about the potential economic disruptions of Trump's proposed mass deportations and tariffs, which could affect labor supply and inflation depending on policy details. Analysts fear that retaliatory actions from trade partners might exacerbate inflationary pressures. Trump's policies, including immigration and tariffs, could significantly impact both U.S. and European inflation, with potential repercussions for interest rates and economic stability.