Investing.com -- Donald Trump has officially taken the oath of office, assuming the role as the 47th President of the United States. His policy agenda, if fully implemented, is anticipated to have substantial macroeconomic impacts. Yet, it is likely that financial and political constraints may result in actual policies falling short of his campaign promises.
Solita Marcelli, Chief Investment Officer Americas at UBS Global Wealth Management, shared the organization's outlook for the US economy. According to Marcelli, the base case scenario is for growth despite the potential implementation of tariffs. UBS will keep a close eye on potential risks, but does not predict that the proposed tariff measures will be enough to hinder US economic growth.
Furthermore, UBS does not expect these tariffs to prevent inflation from continuing its current downward trend. This could potentially pave the way for the Federal Reserve to decrease rates by 50 basis points later this year. The firm's perspective suggests a cautious optimism for the US economy under President Trump's administration, despite potential policy changes.
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