3 Reasons Dire Economic Predictions on Trump's Policies Were Wrong: Brookings
Business Insider • • business
Key Points:
- Despite widespread economic warnings, President Donald Trump's policies have not triggered the predicted recession or steep inflation, with the economy maintaining low unemployment and steady consumer spending.
- The Brookings Institution suggests economists overestimated the negative effects of Trump's tariffs, immigration restrictions, and attempts to influence the Federal Reserve, noting that the U.S. economy's size and diversity provide significant resilience.
- Positive fiscal factors, including the GOP's One Big Beautiful Bill Act and substantial corporate investment in AI, have contributed to economic stability and growth, with AI capital expenditures making up 40% of GDP in 2025.
- Economic experts caution that the full impact of Trump's policies may not yet be apparent, as effects from immigration changes, Federal Reserve dynamics, and trade
