Will Trump Crush Kamala In Presidential Debate Like He Did To Biden?

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Trump Gets Shocking Analysis About The Economy

Goldman Sachs analysts have raised concerns about potential economic slowdowns if former President Trump is re-elected and successfully enacts key components of his agenda. According to their analysis, Trump’s proposed measures, such as tightening immigration policies and imposing new tariffs on Chinese imports, could result in a significant dip in the country’s economic growth. Specifically, they estimate that U.S. GDP growth could slow by half a percentage point during the latter half of 2025, before potentially recovering the following year.

The analysts argue that the negative effects of tariffs and stricter immigration would outweigh any potential fiscal benefits, particularly in the early stages of a second Trump presidency. This outlook presents a contrast to the economic forecast under a Harris presidency, where Goldman Sachs projects better overall performance. The report suggests that Harris’s proposed spending initiatives, tax credits, and middle-class support policies would offset any drawbacks from her plan to increase the corporate tax rate to 28%. This increase, while reversing part of the 2017 Tax Cuts and Jobs Act (which lowered the corporate tax rate to 21%), would, according to Goldman, still result in stronger economic growth compared to Trump’s policies.

Should Harris win and face a divided Congress, Goldman anticipates smaller policy changes and a more neutral effect on GDP growth. Her campaign has emphasized support for the middle class, job creation, and lowering costs for families, which her team believes will set her apart from Trump in terms of economic impact.

Meanwhile, broader economic conditions, including possible interest rate cuts by the Federal Reserve and changes in bond yield curves, could also affect the next president’s economic agenda. The Federal Reserve is expected to reduce interest rates for the first time in over five years, with the decision potentially influenced by recent employment data and economic performance indicators.

Overall, the analysts are painting two starkly different scenarios for the U.S. economy depending on the outcome of the 2024 election, highlighting the potential economic consequences tied to each candidate’s policy approach.