That’s why his election victory would be a big risk

Other stagflation risks associated with Trump include his opposition to tackling climate change and the likelihood that he will seek to replace Federal Reserve Chair Jerome Powell with someone more compliant. Ultimately, Trump’s fiscal policy would further increase the already high deficits. Expiring tax cuts would be extended, as would increased defense and entitlement spending. The risk that so-called “bond vigilantes” (investors who drive up interest rates by selling bonds) would shock the bond markets with significantly higher yields would increase. Given the high and rising levels of private and public debt, this would raise the specter of a financial crisis.