TechFlow news, January 13 — According to Jinshi News, Trump is about to begin his second term, but the current U.S. economic environment stands in stark contrast to that of 2017 when he first took office. Karen Dynan, Harvard economics professor and former Obama administration official, pointed out that factors such as inflation, federal deficits, and government borrowing costs will significantly constrain policy options for the Trump administration.
The current U.S. economy exhibits the following characteristics: a strong labor market with December's unemployment rate at 4.1% and 256,000 new jobs added; inflation remains above the Federal Reserve's 2% target; the 30-year Treasury yield has risen to around 5%, and mortgage rates are nearing 7%. These figures suggest that Trump’s previously proposed plans—such as tariffs, strict immigration restrictions, and tax cuts—may face implementation obstacles.
Mark Zandi, chief economist at Moody’s Analytics, believes the Trump administration’s top priority should be preserving the currently strong economic performance, rather than pursuing radical policies that could have disruptive effects.
