🚨 What Trump's victory could mean for your money

Hi! Money editor Julia Glum here with a news alert: Early this morning, the Associated Press declared Republican nominee Donald Trump the winner of the 2024 presidential election. And though nothing is certain, we do have a few clues as to how a second Trump presidency could affect Americans’ wallets in the short term.

House Majority Leader Steve Scalise, R-La., told nonprofit news website NOTUS last month that righting the economy will be at the top of Trump’s post-inauguration to-do list.

“I’ve already talked to President Trump about the top priorities he would want,” Scalise said. “The main things we’ve been talking about is getting the economy back on track and securing the border.”

Inflation was the buzzword of the election cycle, given that many Americans are still struggling to make ends meet over two years after post-pandemic inflation peaked at 9.1%. So it’s safe to expect Trump, a seasoned businessman, to try to promptly tackle the cost-of-living crisis, likely using the five-point plan he outlined in the GOP platform. 

His solutions include increasing American energy production, slashing wasteful government spending, reinstating deregulation policies, curbing illegal immigration and improving geopolitical stability. (Many of Trump's proposals would require the approval of Congress, where it appears Republicans regained control of the Senate while the final split of the House of Representatives is still in flux.)

“On Day One, I will sign an executive order directing every federal agency to immediately remove every single burdensome regulation driving up the cost of goods,” Trump said at a Halloween rally in New Mexico. He then took it one step further, vowing to add a cabinet official focused on inflation if elected.

But inflation is actually near the Federal Reserve’s preferred level of 2% in the long run, and economists have warned that a second Trump presidency could “reignite” sky-high price increases.

One thing analysts will probably be watching in the months ahead is how Trump interacts with the Fed, which is set to announce another interest rate cut Thursday. Although Trump said in July he wouldn’t fire Fed Chair Jerome Powell, Reuters reported that the former president recently expressed hope that he could influence the central bank’s decisions to adjust the federal funds rate.

"I think I have the right to say I think you should go up or down a little bit. I don't think I should be allowed to order it, but I think I have the right to put in comments as to whether or not the interest rates should go up or down," he said.

For analysis of the president-elect's policies and what a second Trump term may mean for your taxes, tariffs and health insurance, click below.