The Next Phase of Trumpflation Has Arrived, and It's Terrible News for the Federal Reserve and Wall Street
Trumpflation is about much more than just rising energy prices.
Overview
Despite short-lived periods of historic volatility under President Donald Trump, few presidents over the last 130 years have overseen higher annualized stock market returns. During Trump's first term (Jan. 20, 2017-Jan. 20, 2021), the mature-stock-driven Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-propelled Nasdaq Composite (NASDAQINDEX:^IXIC) soared 57%, 70%, and 142%, respectively.
Since the start of his second term (Jan. 20, 2025), these outsize gains have continued, with the Dow, S&P 500, and Nasdaq rising by 19%, 29%, and 39%, respectively, through the closing bell on Sept. 22.
Details
While everything has been going swimmingly for the U.S. economy and stock market, cracks appear to be forming in their foundations, courtesy of persistently elevated inflation. Although modest inflation is normal in a growing economy -- i.e., businesses should possess some degree of pricing power over their goods and services -- what we've witnessed in 2026 goes beyond "modest."
Source
Originally published at www.fool.com.