The Indicator from Planet Money What indicators will 2025 bring?
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Dec 23, 2024 As 2024 wraps up, the hosts reflect on quirky indicators and discuss what to watch in 2025. They dive into economic signals like inflation, employment rates, and consumer behavior that could shape future decisions. The potential impact of tariffs on global trade is also examined, likening it to historical events. Expect a balance of humor and insight as they explore these fascinating economic dynamics!
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Inflation Expectations & Consumer Behavior
- Consumer inflation expectations can influence future spending behavior.
- High inflation expectations may lead to increased spending, potentially creating a self-fulfilling inflationary spiral.
Trump's Policies and Inflation
- Donald Trump's economic policies, such as tariffs and deportations, could lead to increased inflation.
- Tariffs raise import costs, and deportations can disrupt businesses and increase labor costs.
The Elusive R-Star
- R-star, the ideal long-term interest rate, is difficult to determine and constantly debated.
- It depends on future economic conditions, like government spending and growth opportunities.