inflation

But concerns remain that a shift in policies could affect inflation rates.

Economists have warned that such tariffs could drive up consumer prices as companies pass on higher costs, potentially worsening inflation and putting further interest rate cuts on hold.

The Peterson Institute for International Economics forecasts that, combined with steep tariffs and mass deportation, these measures could lead to lower national income, reduced employment and inflation rates between 6% and 9.3% by 2026.

In a move to boost the economy as inflation cools, the Federal Reserve on Nov. 7 cut its benchmark interest rate by 25 basis points as expected, following a September rate cut.

Inflation has already been a major concern for U.S. consumers, reaching a peak of 9.1% in June 2022 due to pandemic-related supply chain disruptions.