February 15, 2025

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Trump’s bold agenda unlikely to tame US inflation, warns Nigel Green

Donald Trump’s presidency may be just four days old, but the new US leader is already demonstrating his appetite for sweeping changes, declaring his ambition to lower global oil prices, taxes, and interest rates during a speech at the World Economic Forum in Davos, Switzerland. 

However, Nigel Green, CEO of deVere Group, one of the world’s largest financial advisory organizations, asserts that these plans are more likely to stoke inflation in the US than subdue it.

“President Trump has presented himself as a man on a mission,” he says. “His administration’s ambitious fiscal stimulus agenda, coupled with tax cuts and an aggressive tariff regime, are fueling expectations of higher, not lower, inflation. These policies—intended to inject short-term energy into the economy—will come at the cost of longer-term financial stability.”

Trump’s tax cuts are expected to reduce federal revenue significantly, while plans for expansive infrastructure spending and increased defense budgets will balloon the national deficit. Historically, such policies create upward pressure on prices as governments flood economies with borrowed money. At the same time, tariffs on goods manufactured abroad—a cornerstone of Trump’s platform—are set to raise costs for businesses and consumers alike.

“Let’s not forget that tariffs are essentially taxes on imports,” Nigel Green explains. 

“Businesses that rely on global supply chains will pass these costs on to American consumers. In essence, families and households will bear the brunt of these policies through higher prices on everyday goods. This is inflationary pressure by another name.”

Trump’s bold rhetoric has rallied parts of the business community, but the deVere CEO warns that optimism could quickly fade if inflationary risks materialize. 

“While the president speaks of wanting lower oil prices and interest rates, his policy framework appears designed to achieve the opposite. We’ve already seen market reactions hinting at higher rates, which will compound borrowing costs for businesses and individuals.”

Despite these concerns, Nigel Green underscores that inflation doesn’t have to be an inherent negative if managed effectively. 

“Moderate inflation can signal a healthy economy. But runaway inflation—the kind triggered by protectionist trade policies, among other factors —erodes purchasing power and damages economic growth. Investors need to position themselves now for what lies ahead.”

deVere Group is advising clients to consider inflation-hedging strategies, including investments in stocks likely to benefit from Trump’s new term. “Savvy investors know the importance of preparing for inflationary cycles. These cycles are opportunities for those who think ahead,” Nigel Green adds.

With Trump’s presidency still in its infancy, Nigel Green encourages investors and business leaders to evaluate the impact of his policies sooner rather than later. “The speed and scale of Trump’s agenda should not be underestimated. He is making good on campaign promises with remarkable urgency, and markets must brace themselves for the consequences.”

The message is clear: “This is a pivotal moment for the US economy and global markets. Waiting to see how policies unfold will only leave investors and businesses playing catch-up.”

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