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

EXCERPT:

ZANDI: "Well, you know, Sara, I think if Harris wins, we're going to have a divided government. I mean, I think we can say with some level of -- you can't say anything with confidence --"
EISEN: "Yeah, sure."
ZANDI: "-- but with some level of confidence, the Senate's going to go Republican. If that's the case, that's the policy status quo. I don't see any major changes in policy. So if you like the economy today, you'll like the economy a year from now, two years from now. And the economy today is performing very well. If the other scenario equally likely President Trump wins reelection, and in that case, I suspect we'll get a Republican sweep. And then that's a game changer, right? We get broad based tariffs. We get some form of deportation. If it's a sweep, we'll probably get some more tax cuts that are largely deficit finance. In my mind, that means higher -- some combination of higher inflation, higher interest rates and a diminished economy. So, you know, if I had -- if I had to pick based on what the candidates are saying, I'd say the -- I'd take the status quo at this point."