In Reply to: Re: Rising interest rates pose a threat to the economy posted by russsmith on September 21, 2026 at 15:08:03
Removing tariffs, reducing the government’s deficit expansion, ending the disruption caused by ICE enforcement, and restoring access to lower-cost foreign inputs would all reduce cost pressures and improve supply.
Just being consistent and predictable with economic policy would also give businesses more confidence to invest and expand.
If policy credibility improves, the U.S. could attract more foreign capital. Greater demand for U.S. stocks and Treasuries could put downward pressure on Treasury yields and lower borrowing costs across the economy.
Even with the economic uncertainty created by the Iran war, the administration has a number of policy levers available to support growth while reducing inflationary pressures.