Financial experts warn Trump tax cuts could cause national deficit to expand
The Federal Reserve did cut interest rates this week, but that doesn’t mean mortgage rates will drop. Post-election experts warn that they could go up over time, along with inflation.
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Owning a home is increasingly out of reach for many New Jersey residents. The average home-buyer in the United States is now 56 years old. That is a seven-year jump in just the last 12 months.
The Federal Reserve did cut interest rates this week, but that doesn’t mean mortgage rates will drop. Post-election experts warn that they could go up over time, along with inflation.
Some say that if President-elect Donald Trump cuts taxes the nation’s deficit will expand.
"It means we have to print money to pay for it. You get more inflation in the future and so, if I’m lending you money - say $100,000 in mortgage for 10 years or 30 years - I start charging you higher interest rates. Long-term rates will be the…warning light. That’s when Trump will have to walk back some of the tax cuts, I’m afraid,” says Farrokh Langdana, director of the Rutgers Executive MBA program.
Langdana says the deficit is already in a concerning place.
