As the 2024 presidential election looms, Americans contemplate the potential impacts of a Kamala Harris versus a Donald Trump presidency. Our next president will impact many variables and facets of our lives depending on what happens this November. For this article, I wanted to focus on a presidential impact concerning inflation, the Federal Reserve, and the real estate market. Each candidate brings distinct economic philosophies and policies that could shape the nation’s financial landscape.
Inflation
Vice President Kamala Harris is likely to continue the Biden administration’s approach to ignoring inflation, which includes a mix of stimulus spending, energy policies, and trade policies that didn’t factor in the massive deficit of our country. Many of the Biden-Harris administration’s policies aimed to support low-income families and labor market interventions, which have all contributed to higher inflation.
Former President Donald Trump’s approach to inflation emphasizes economic growth through deregulation and tax cuts. Trump argues that by reducing regulatory burdens and lowering taxes, businesses will have more capital to invest and grow, potentially increasing supply and stabilizing prices. Critics say that his international tariff threats will lead to higher inflation, although that was not the case in his previous term.
The Federal Reserve
Harris is expected to maintain a hands-off relationship with the Federal Reserve. Her administration would likely appoint Fed officials who prioritize non-financial agendas such as global warming and diversity in employment. Supporters argue that this approach helps ensure economic stability, while critics worry it may lead to debilitating monetary growth and further deterioration of our economy.
Trump’s tenure saw frequent public pressure on the Fed to lower interest rates. If re-elected, Trump will continue to push for policies that favor economic growth. His administration could appoint Fed officials with dovish tendencies, favoring lower interest rates to stimulate the economy. This approach could lead to short-term economic boosts but might increase the risk of long-term inflationary pressures if not carefully balanced.
Real Estate and Housing
Harris’s policies will likely focus on affordable housing and stricter landlord policies. She might advocate for increased federal funding for housing assistance programs, incentives for first-time homebuyers, and support for developers to build affordable housing. Proponents believe this approach could help stabilize real estate prices over time, while opponents argue it could lead to higher taxes and increased regulation that might stifle development.
Trump’s real estate policies are expected to emphasize deregulation and tax incentives to boost the housing market. His approach could involve reducing restrictions on land use and development to encourage construction and investment in real estate. Supporters argue this could lead to increased housing supply and lower prices, while critics warn of potential market volatility and overbuilding. That said, the man has spent his career in real estate – it is possible that he knows what he’s doing.
The contrasting economic philosophies of Kamala Harris and Donald Trump would likely lead to different outcomes in terms of inflation, Fed policies, and the real estate market. Ultimately, the choice between Harris and Trump reflects broader debates about the role of government in managing the economy, the balance between growth and stability, and the priorities for addressing America’s housing challenges. Voters will need to weigh these considerations carefully as they decide the nation’s economic direction for the coming years.
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Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.
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