How Much Control Will Trump Actually Have Over Inflation? | WSJ

President-elect Donald Trump vowed on the campaign trail to lower inflation. About half of Trump voters said higher prices were the largest factor in their decision, according to AP VoteCast. But the Federal Reserve is independent and uses interest rates to encourage or discourage borrowing money, which leads to more or less spending. So how much control does the president actually have over inflation?

WSJ asked a former Federal Reserve vice chair to break down the inflation-fighting tools Trump will have at his disposal.

Chapters:
0:00 Trump wants to lower inflation
0:31 What can affect inflation
2:35 What a president can do about inflation
3:25 Where Trump stands

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#Trump #Inflation #WSJ

[junior]

Companies rarely lower prices after they go up. No matter the supply.

[nicolasbenson]

higher taxes = higher inflation = government subsides to quell inflation, The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.

[TinaJames]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[michaelhutchings]

>I will lower inflation!
>Increases tariffs

Hmmmm

[sapphyrus]

Customers pay for the tariffs, not companies or states. I guess the American voter will learn this the hard way.

[technicolorsoultheory]

I’m starting to think average voters think inflation going down means prices go down. Prices never go down. The rate prices increase goes down.

[pro-libertatibus]

For some unfathomable reason, voters who have been trained to distrust experts, politicians, and government chose the lesser candidate because he makes undeliverable promises.

[thomasAdam-jn]

as inflation is influenced by a complex mix of domestic and global factors, and addressing it can take years of targeted policy adjustments. i assume Trump would sort inflation out after how Biden left the country economy wildly weak which affected the Stock market price making many lose their assest when he was on sit then all these inflation is a game of manipulation, It might be worth considering speaking to a financial adviser to help navigate this tricky time if not already doing so. They can provide tailored advice for your situation. Personally I’ll recommend ‘Sophie Kathryn Jones’, she’s a SEC and FINRA licensed expert.

[ivanuski]

This is not just inflation, companies are price gouging.

[theGiantrider]

Yeah billionaires gonna make your eggs cheaper 😂

[chessdad]

Trust the King of Bankruptcies. How could it go wrong?

[steveb]

Cumulative inflation during the last three years of Obama’s administration was 3.6%. In the first three years of Trump’s administration it was 6.3%. Inflation began with Trump.

[shack]

Once again he will inherit a strengthening economy and take all the credit for it

[Drunken_Master]

Can't wait to see consumer prices double this time next year :)

[dilara]

I plan to retire at 62 in another country outside the US that is free, safe and very cheap with a high quality of life. I could fully just rely on only my SS if I wanted to when that times arrives but l'll also have at least one pension, a 403 (b) and a very prolific Investment account with my Stephanie Janis Stiefel my FA. Retiring comfortably in the US these days is almost impossible.

[vickietaylor]

He isn’t going to do anything. He can’t fix everything and he would not know how! Just a bunch of empty promises. Wait and see.

[bltsandwich]

10% across-the-board tariffs, and deporting cheap labor will increase consumer prices. How did anyone vote for an idiot whose plan will cause even more inflation is crazy.

[tonysilke]

Trump's policies had been viewed by many experts as more positive for the financials sector, spurring this massive rally. It's enticing to consider purchasing some stocks, I'm contemplating investing more than $300k. Thoughts?

[BasilFanatic]

Trump supporters will have a rude awakening when they realize Trump can’t do everything. But what am I kidding, they will still follow him no matter what. Everything is someone else’s fault.

[deek]

As if the American mind can comprehend this