In a Fresh Air interview, David Wessel explores the possible economic effects of a second Trump administration. He examines Trump's proposed policies, such as imposing high tariffs on imports from Mexico and Canada, implementing tax cuts, and reducing government spending. Wessel expresses doubt about the effectiveness of tariffs in boosting manufacturing jobs, pointing out the significant impact of automation. He acknowledges that while tax cuts could lead to a larger deficit, the immediate concern isn't a fiscal crisis but rather the risk of political instability undermining investor confidence and raising interest rates. Additionally, Wessel discusses Trump's likely choices for key economic roles, suggesting that appointing a politically independent Federal Reserve chair could ultimately align with Trump's economic objectives.
