Moody’s Zandi: If Trump Wins, We’ll Get Higher Inflation, Higher Interest Rates and a Diminished Economy

EISEN Just a day ░░░░░░░░ from the election stocks ░░░░░░░░ a little changed S ░░░░░░░░ is higher It s ░░░░░░░░ lower earlier this morning ░░░░░░░░ Zandi Moody s Analytics ░░░░░░░░ Economist joins us now ░░░░░░░░ his predictions And Mark ░░░░░░░░ to sort of set ░░░░░░░░ table here you I ░░░░░░░░ you were an advisor ░░░░░░░░ John McCain but typically ░░░░░░░░ you ve been more ░░░░░░░░ with Democrats or at ░░░░░░░░ they cite your work ░░░░░░░░ it comes to economic ░░░░░░░░ of Democrat parties are ░░░░░░░░ still in that that ░░░░░░░░ ZANDI Well Sara I ░░░░░░░░ advice to a lot ░░░░░░░░ lawmakers from all parties ░░░░░░░░ you know if they ░░░░░░░░ a credible candidate you ░░░░░░░░ I view it as ░░░░░░░░ public service to provide ░░░░░░░░ if they ask Now ░░░░░░░░ this campaign the Harris ░░░░░░░░ have asked me to ░░░░░░░░ and weigh in on ░░░░░░░░ housing plans and I ░░░░░░░░ done that So just ░░░░░░░░ put everything on the ░░░░░░░░ EISEN Yeah no no ░░░░░░░░ just wanted to be ░░░░░░░░ So thank you for ░░░░░░░░ So what is your ░░░░░░░░ of well let s ░░░░░░░░ with her housing plans ░░░░░░░░ Well I like the ░░░░░░░░ side You know she ░░░░░░░░ focused we have a ░░░░░░░░ to back up we ░░░░░░░░ an affordable housing crisis ░░░░░░░░ very severe shortage of ░░░░░░░░ for rent and for ░░░░░░░░ for folks that have ░░░░░░░░ and middle incomes people ░░░░░░░░ are having a great ░░░░░░░░ of difficulty becoming homeowners ░░░░░░░░ we we need more ░░░░░░░░ And I like the ░░░░░░░░ of her housing plan ░░░░░░░░ juices up supply tax ░░░░░░░░ low income housing tax ░░░░░░░░ for more affordable rental ░░░░░░░░ s a tried and ░░░░░░░░ program that s been ░░░░░░░░ for several decades I ░░░░░░░░ that s a good ░░░░░░░░ And then a tax ░░░░░░░░ for home builders who ░░░░░░░░ starter homes homes that ░░░░░░░░ at a lower price ░░░░░░░░ so that we get ░░░░░░░░ supply at the lower ░░░░░░░░ of the market So ░░░░░░░░ things I think are ░░░░░░░░ critical and very very ░░░░░░░░ The demand side proposals ░░░░░░░░ m less enamored with ░░░░░░░░ mean I think if ░░░░░░░░ came later they would ░░░░░░░░ helpful but not until ░░░░░░░░ have more supply EISEN ░░░░░░░░ A lot of people ░░░░░░░░ they d be inflationary ░░░░░░░░ 25 000 for first ░░░░░░░░ buyers So net net ░░░░░░░░ which candidate will be ░░░░░░░░ for the economy ZANDI ░░░░░░░░ you know Sara I ░░░░░░░░ if Harris wins we ░░░░░░░░ going to have a ░░░░░░░░ government I mean I ░░░░░░░░ we can say with ░░░░░░░░ level of you can ░░░░░░░░ say anything with confidence ░░░░░░░░ Yeah sure ZANDI but ░░░░░░░░ some level of confidence ░░░░░░░░ Senate s going to ░░░░░░░░ Republican If that s ░░░░░░░░ case that s the ░░░░░░░░ status quo I don ░░░░░░░░ see any major changes ░░░░░░░░ policy So if you ░░░░░░░░ the economy today you ░░░░░░░░ like the economy a ░░░░░░░░ from now two years ░░░░░░░░ now And the economy ░░░░░░░░ is performing very well ░░░░░░░░ the other scenario equally ░░░░░░░░ President Trump wins reelection ░░░░░░░░ in that case I ░░░░░░░░ we ll get a ░░░░░░░░ sweep And then that ░░░░░░░░ a game changer right ░░░░░░░░ get broad based tariffs ░░░░░░░░ get some form of ░░░░░░░░ If it s a ░░░░░░░░ we ll probably get ░░░░░░░░ more tax cuts that ░░░░░░░░ largely deficit finance In ░░░░░░░░ mind that means higher ░░░░░░░░ combination of higher inflation ░░░░░░░░ interest rates and a ░░░░░░░░ economy So you know ░░░░░░░░ I had if I ░░░░░░░░ to pick based on ░░░░░░░░ the candidates are saying ░░░░░░░░ d say the I ░░░░░░░░ take the status quo ░░░░░░░░ this point EISEN All ░░░░░░░░ Mark Zendi thank you ░░░░░░░░ and sweet today ZANDI ░░░░░░░░ EISEN I appreciate it ░░░░░░░░ the analysis on the ░░░░░░░░ Mark Zandi of Moody ░░░░░░░░ Analytics.”