Why Trump's fiscal policy doesn’t add up

Listen and subscribe to Stocks In Translation on Apple Podcasts, Spotify, or wherever you find your favorite podcast. In this episode of Stocks In Translation, Yahoo Finance markets and data editor Jared Blikre and producer Sydnee Fried welcome Joe Brusuelas, RSM chief economist, to the podcast to discuss regime change and the post-pandemic economy.
As Donald Trump transitions back into the White House for his second term, Brusuelas noted the president-elect's administration will focus on narrowing the deficit. However, that may contradict with Trump's approach to economic populism.
Trump aims to lower taxes and increase government spending, which leads to higher deficits and debt. "The issue is that Trump and his policymakers will want to narrow the trade deficit, Brusuelas said. "But you can't do that when you get a stronger dollar because lower taxes mean more disposable income, and you attract more imports."
This results in higher trade deficits, as seen during Trump's first two years in office. Brusuelas added, "that internal inconsistency that lies at the heart of economic populism that the Trump administration intends to pursue, which creates what I think is a road that leads to tensions."
Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers, and hyperbole, giving you the information you need to make the right trade for your portfolio.
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