This thread is in the Business forum not Cloak Room, so it is important to look at objective, non-partisan facts, and not opinions. Objectively, we are indeed walking a very frightening tight rope.
Objectively looking at qualifications, most of the economic advisors and administrators that have been hired in the Trump administration are generally regarded as unqualified, except for perhaps Bessent. These people haven’t had the experience, roles, or education to demonstrate competency.
And as we’ve seen with people who “might” be competent, like Bessent, and with people who report negative information, and with anyone else who dares to call out bad decision making by the administration, they are silenced with dictatorial actions that at best are un-American and at worse an illegal abuse of power. This keeps dissent from fixing bad decision making
The immigration actions are inflationary. The government spending is inflationary, just like the money dump Trump did during Covid that started this inflation mess. The tariffs are inflationary. The call for a 1.5-3 point rate cut is highly likely to be very inflationary.
At this point we should all assume they want inflation of 3-5% annually to inflate away the debt, which I’ve said many times before. And they want a recession to be able to borrow more cheaply. However the tightrope here is that these actions could definitely create stagflation.