TechFlow News, October 28 — According to Jinshi Data, Nick Timiraos, senior economics reporter at The Wall Street Journal and widely regarded as the "mouthpiece of the Fed," published a new analysis today indicating that although the Federal Reserve has made progress in curbing inflation over the past two and a half years, the U.S. election could disrupt this trajectory. Economic policies proposed by both presidential candidates may hinder further declines in inflation, with market concerns particularly focused on Donald Trump's proposals for sweeping import tariffs, deportation of workers, and interest rate cuts.
Brian Riedl, former Republican Senate aide and current advisor at the Manhattan Institute, said the risk of worsening inflation in 2025 warrants attention. Recent rises in bond yields reflect market expectations that a Trump victory could lead to higher deficits and increased inflationary pressure. Notably, while the consumer price index has fallen to 2.4%, close to pre-pandemic levels, any factor reigniting inflation could prompt the Fed to slow down or even pause its rate-cutting plans.
