Tariffs, deregulation and immigration reforms from the Trump administration are key factors in increased inflation, nominal GDP and interest rates paired with price volatility, according to KKR’s Global Wealth Investment Playbook.
The new administration’s policies are likely to lead to inflation and volatility. With a possible pullback in federal funding for electric vehicles (EVs), wind and solar, the energy transition may slow its momentum, making it more expensive in the long term. Onshoring is expected to continue, as diplomatic ties are realigned and even severed. Constraints on immigration will lead to significant labor shortages, therefore increasing inflationary pressures.
According to KKR, a pro-risk stance is maintained, but there is an emphasis on acknowledging the uncertain and uneven global economic recovery. In the new investing environment, KKR notes geopolitically driven volatility, asynchronous regional cycle, lower asset-class returns and
