Meketa Connectives | Will a Unified Government Increase Government Debt and Inflation Risks?

As markets process the sweeping Republican victory in the US 2024 election, some investors and pundits are anticipating more government spending and a larger budget deficit.

One think tank, the Committee for a Responsible Federal Budget, has estimated that President Trump’s policy proposals could add another $7.5 trillion dollars to the US deficit by 2035. This would result from an extension of the corporate tax rate reduction passed when he was last in office as well as other new tax cuts. With unified control of Capitol Hill and the Whitehouse, Republicans may well be able to implement a plan of more spending and more tax cuts.