Investing.com — New U.S. President Donald Trump has made clear his intention to implement significant changes, including lowering global oil prices, taxes and interest rates. However, Nigel Green, CEO of the deVere Group, one of the world’s largest financial advisory organizations, expressed concerns that these plans could instead trigger inflation in the United States rather than suppress it.
Green said the Trump administration’s ambitious fiscal stimulus program, tax cuts and aggressive tariff regime are leading to expectations of higher inflation. He suggested that these policies, aimed at stimulating the economy in the short term, could potentially undermine long-term financial stability.
Trump’s proposed tax cuts are expected to significantly reduce federal revenues. At the same time, plans for significant infrastructure spending and increased defense budgets could inflate the national deficit. Historically, such policies have led to rising prices as governments injected borrowed money into economies. Additionally, tariffs on foreign-made goods, a key part of Trump’s agenda, are expected to increase costs for businesses and consumers.
Green clarified that tariffs are essentially taxes on imports. Companies that rely on global supply chains will likely pass these costs on to U.S. consumers, forcing households to bear the burden of these policies by raising prices for everyday consumer goods. According to Green, this is another form of inflationary pressure.
Although Trump’s assertive rhetoric has garnered support from some segments of the business community, Green warned that this optimism could quickly diminish if inflationary risks become a reality. He warned that despite Trump’s stated desire to lower oil prices and interest rates, his policy framework appears aimed at achieving the opposite. Market reactions hinting at higher rates could increase borrowing costs for businesses and individuals.
Green, however, emphasized that inflation is not inherently negative if managed effectively. Moderate inflation can indicate a healthy economy, but uncontrolled inflation, possibly triggered by protectionist trade policies, can erode purchasing power and harm economic growth. He urged investors to prepare for what lies ahead.
DeVere Group advises clients to consider inflation-hedging strategies, including investments in stocks likely to benefit from Trump’s new term. Green also urged investors and business leaders to assess the impact of Trump’s policies as soon as possible, warning that the speed and scale of Trump’s agenda should not be underestimated.
Green’s message was clear: We are living in a crucial time for the U.S. economy and global markets. Waiting to see how policies play out could leave investors and businesses behind.
This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.
