Paying Tax Cuts with Carbon

This macroeconomic outlook by AXA Investment Managers analyzes the fiscal and inflationary challenges under the Trump administration's proposed policies.

• Fiscal Policy: Proposed tax cuts face significant funding gaps; strategies may include rolling back green incentives and imposing tariffs.
• Inflationary Concerns: Persistent core inflation and potential fiscal stimulus risk further Fed rate tightening in 2025.
• Global Implications: European Central Bank debates forward guidance, while U.S. decarbonization efforts may slow under new leadership.

For an in-depth analysis of fiscal strategies and market implications, access the full report.