Robust US Economy May Not Need Trumps Big Reforms

January 13, 2025

Robust US economy may not need Trump's big reforms

"Success for the Trump administration would be to do no harm to the exceptionally performing economy it is inheriting," said Mark Zandi, chief economist at Moody's Analytics. On their face, the planned combination of tariffs, deportations, and deficit-funded tax cuts "will do harm. How much ... depends on how aggressively these policies are pursued."

Referring to recent U.S. performance that has outstripped that of other developed nations and surprised many economists, Dynan said that "if you believe the economic growth in excess of trend is from immigration, it is going to be hard to get numbers as large as we saw in the latter part of the Biden administration."