When former President Donald Trump steps back into his Leader of the Free World shoes, he’ll need to get to work on some of the economic promises he’s made.
Trump’s success will depend on a host of factors and it’s unclear exactly which proposals he will pursue and which will make the cut with with Congress. Here’s a rundown of what Trump promised on the campaign trail:
Inflation
Inflation, as measured by the consumer price index, has already slowed to 2.4%, well off its pandemic-fueled peak. Trump promised to lower prices and slow inflation, but whether a president can directly do so is less certain.
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Place tariffs on imports. Trump wants to place a 10% to 20% tariff on all foreign imports; up to 60% tariff on imports from China; and 100% to 200% imports on automobiles produced in Mexico. He says his tariffs would support U.S. manufacturing and raise revenue. But experts from all over the political spectrum say that his tariff plan is more likely to increase prices in the U.S.
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Lower gas prices. Trump has pledged to increase oil and gas production on federal lands. The president’s ability to lower gas prices is limited as the price at the pump is more directly influenced by global market forces.
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Weaken the power of the Federal Reserve. Trump says he wants to bring the Federal Reserve under the power of the president; experts say it could weaken the central bank’s credibility in making interest rate decisions.
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Cap credit card interest rates at around 10%. The…
