Trump's presidency could exacerbate inflation due to potential aggressive interest rate cuts by the Fed, which may lead to easier financial conditions, increasing price pressures. Notably, market reactions have already affected commodity prices in anticipation of his policies.
The strength of the dollar compared to the pound is pivotal, as it affects staple commodity prices, like bread, coffee, and sugar, specifically if purchased in USD, making them more expensive for consumers.
With Trump’s potential ability to impose tariffs from day one, there’s a looming risk that increased costs will be passed on to consumers, impacting everyday prices significantly.
The potential investment shift from the UK to the US due to Trump’s policies could harm UK firms and jobs, particularly if the dollar remains strong against the pound.
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