How Trump's Win Could Affect the US Economy

Trump’s election victory has sparked mixed media coverage across the spectrum on how the American economy could be affected.

Markets: The Wall Street Journal (Center bias) highlighted how the stock market rallied in the fifth-best day ever for U.S. stocks’ capitalization following Trump’s win. The Journal noted that enthusiasm was “especially heated in a few areas” that included financial companies and banks. It attributed this to the overall perception that Trump will ease regulations in the sector. The Journal also noted, however, that economists have warned “The expected Trump policies bring twin threats of higher inflation and larger budget deficits,” which could potentially be why the Federal Reserve didn’t cut rates as aggressively as some hoped it would.

Tariffs: Both Business Insider (Lean Left bias) and Fox Business (Lean Right bias) highlighted how some think the tariffs Trump has expressed interest in imposing could add to inflation. Business Insider noted that Trump said in August, “I am going to put tariffs on other countries coming into our country, and that has nothing to do with taxes to us,” but that some economists have argued otherwise.

Mortgages: A report from CNBC (Center bias) highlighted that mortgage rates rose on Wednesday and caused housing stocks to fall. CNBC added the context: “Trump’s victory spurred a rise in the U.S. 10-year Treasury yield. Mortgage rates, which loosely follow the benchmark yield, are also climbing.”