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The impact of a second Trump term on the economy

If President Donald Trump were to win a second term, we’d expect both fiscal and monetary policy to remain loose, amid a push to install a more dovish Fed Chair in 2022. There would also be an upside risk of a second, smaller round of deficit-financed tax cuts if Republicans regain control of Congress. But a resumption of tensions with China and a broadening of the trade war would remain key downside risks.

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