Tyler Schipper, associate professor of economics at the University of St. Thomas College of Arts and Sciences, recently spoke with U.S. News & World Report about how Trump’s 2025 policies, like tax cuts and tariffs, could impact the economy.
From the story:
On Jan. 20, 2025, Donald Trump will officially take the helm as 47th president of the United States. Projections for the way his next term will impact the economy have divided stakeholders and shaken nerves. ...
Economists and academics are already debating the outcome of Trump’s policies. If a recession does come to pass, Americans would face stagnating or declining incomes, fewer jobs and a higher cost of living.
If Trump’s policies have the opposite effect, however, economic expansion would create opportunities for businesses and consumers.
“In real terms, it means more families will struggle,” says Tyler Schipper, associate professor of economics at the University of St. Thomas in St. Paul, Minnesota. “With declining incomes they won’t be able to afford things like groceries and child care.”
Schipper feels the probability of a recession occurring in 2025 is less than 50%, but the year still looks worrisome. Due to implementation lag, it takes time for the impact of policies to show up in the real economy, so it’s a wait-and-see situation. ...
“Entering a Trump administration, the economy is solid but facing a weakening labor market. Today’s consumer price index suggests the Fed may not be able to cut interest rates as fast as they had hoped,” he adds.
