that’s a cop out. We are talking economics here right? You know that rate cuts lead to more borrowing and spending and inflation is a result.
I disagree.
Rate cuts lead to less borrowing. A 1% Fed rate cut results in $300b LESS cost for interest on the $37T debt.
As for spending, the BBB cuts $1.5T off the last Biden budget.
CBO scores the BBB as having a $3.3T deficit over 10-years, or $330b a year.
Tariff revenue will be about $300b a year
DOGE savings could be $190b a year if congress acts
The CBO'S GDP assumption of 1.8% is low, so tax revenue should be higher than assumed
Added together, Trump should eventually get to a surplus, like the $127b surplus for June.
Look at what happened during COVID when rates drop to near nothing… Tariffs increase the price of goods as well. They are a tax on goods. So these two policies contribute to price increases not decreases. Do you agree?
Partially agree, some prices will increase somewhat. Tariff costs are generally shared by the importer, the manufacturer, and the retailer. 100% of the tariff is rarely paid by the consumer, or sales will drop.