The improving economy, however, will
likely lead to higher inflation and interest rates, which will raise the cost of borrowing for consumers and investors.
If Trump does start to enact some of the anti-trade policies that he has talked about during the campaign, that would
likely lead to higher inflation and, by extension, to higher cap rates on commercial properties, notes MacKinnon.
Not exact matches
Workers expect their earnings
to keep pace with
inflation, and a more substantial rate will
likely lead to demands for ever
higher wages.
This would
likely lead to further pressure on labor resources,
higher wages and, over time, somewhat
higher inflation.
Surging deficits will
likely require greater Treasury issuance, which will
lead to higher rates, even if
inflation doesn't rise much more.
We believe that a
high degree of economic confidence for the euro zone will
lead the ECB
to hike rates next year, even though
inflation will
likely remain far from the bank's price - stability objective.
We believe that
inflation will continue
to increase moderately in 2018, which
likely will
lead to moderately
higher interest rates as well.
Inflation or repression are more
likely, but
higher taxes or government defaults are not impossible if the politics
lead to a stalemate, where no one is willing
to compromise.