Inflation is the worst it’s ever been in American history, former President Donald Trump falsely claimed this week at a campaign event, also offering up questionable solutions to the very real issue of Americans’ discontent over their weakened spending power.
by Derek Saul
Forbes
What Is Trump’s Plan For Inflation?
Trump’s inflation salves floated Thursday were similarly inconsistent with conventional wisdom, as he said there will be “a lot of cutting” to interest rates should he win another presidential term. The independently run Federal Reserve is already widely expected to bring down rates this year irrespective of election results. Trump also seemingly advocated for deflation, where prices decrease year-over-year, a concept which sounds better in theory than in practice as it can cause recessions as less money flows into the economy, telling the crowd, “We’re going to get rid of inflation…not just where you don’t have inflation, where going to bring those costs down.” Since 1960, the last year in which prices fell on an annual basis was 2009 during the Great Recession. Trump also told his supporters he will cut energy prices “in half,” a measure that would likely be highly unpopular among the oil and energy companies whose employees he counts among his top donors.