Trump’s Big Plans Could Fuel US Inflation, Dever CEO Says By Investing.com

Investing.com – Newly inaugurated US President Donald Trump has made clear his intention to implement significant changes to global oil prices, taxes and interest rates. However, Nigel Green, CEO of Dever Group, one of the world’s largest financial advisory firms, expressed concern that these plans could fuel rather than suppress US inflation.

Green said the Trump administration’s ambitious fiscal stimulus agenda, tax cuts and aggressive tariff regime are leading to higher inflation expectations. He pointed out that these policies aimed at providing short-term growth to the economy may undermine long-term financial stability.

Trump’s proposed tax cuts are expected to significantly reduce federal revenue. At the same time, the plan to increase the spending on infrastructure and the defense budget could worsen the national deficit. Historically, such policies have led governments to prop up economies with borrowed money, causing prices to rise. In addition, tariffs on goods manufactured overseas, a key part of Trump’s platform, are expected to increase costs for businesses and consumers.

He explained that the green tariff is mainly a tax imposed on imported goods. Businesses based on global supply chains can pass these costs on to American consumers, causing families to bear the brunt of these policies by paying higher prices for everyday goods. This, like green, is another type of inflation.

While Trump’s reassuring rhetoric has drawn support from parts of the business community, Green cautioned that optimism could quickly fade if inflation materializes. Although Trump has said he wants lower oil prices and lower interest rates, he warned that his policy framework appears intended to achieve the opposite. Market reactions that suggest higher rates may increase borrowing costs for businesses and individuals.

However, he emphasized that the green inflation is not inherently negative. Moderate inflation may indicate a healthy economy, but uncontrolled inflation, perhaps fueled by protectionist trade policies, erodes purchasing power and harms economic growth. Investors are urged to prepare for what lies ahead.

Deaver Group is advising its clients to consider inflation-defending strategies, including investments in stocks that could benefit from Trump’s new term in office. Green urged investors and business leaders to quickly assess the impact of Trump’s policies.

Green’s message was clear: This is a critical time for the US economy and global markets. Waiting to see how policies are enacted can hold investors and businesses back.

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