Trump Tax Law: Refund Surge Could Boost Inflation

President Trumps tax law, set to take effect in 2026, could spark inflation due to generous tax breaks, potentially leading to a refund surge of up to $3,278 per taxpayer. This influx of money could boost consumer spending, but may not be spent as quickly as pandemic stimulus checks. The additional fiscal stimulus, combined with easy monetary policy, could cause inflation to rise, pressuring the Federal Reserve to lower interest rates. However, some experts predict a sharper-than-expected decline in inflation, keeping the Federal Reserve on an easing path.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.