If former president and Republican nominee Donald Trump is elected next week, economists are betting that inflation will go up. Research firm Capital Economics plans to actually raise its interest-rate forecast in such a scenario because its economist Thomas Ryan suspects the Federal Reserve’s reaction will be to pull back on slashing rates.
“If he is elected we’re going to raise our Fed funds forecast by about 50 basis points,” Ryan told me, referring to the interest rate at which banks and other institutions lend money to each other.
