11 April 2025 | Dollar

Trump's immigration policy hinders US economic growth — Dallas Fed

Trump's immigration policy hinders US economic growth — Dallas Fed

Pia Orrenius from the Federal Reserve Bank of Dallas (Fed) warns that President Trump's immigration policies could severely hamper the country's economic growth. She believes arresting and deporting up to 450 people per day will reduce national GDP by 1% this year. 

The tightening of immigration laws, combined with these enforcement actions, is likely to have serious economic consequences for the US, according to her analysis. Deportations reaching 3,000 per day by 2028 may cost the economy 2% of growth, with the effects lasting for several years after peaking.

Her main concern is that the labor market will be adversely affected, which is already facing shortages due to fewer immigrants coming to the country. The sharp decline in border crossings since Trump took office is expected to have a greater impact on economic development rather than deportations. In light of current circumstances, Orrenius predicts a 0.3% inflation spike.

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