10 Jun 2025 | News & Feature

TFP W24 2025: Has the US stagflationary concern stagnated?

  • The US economy has continued to show resilience in Q2-2025, defying earlier pessimistic expectations as President Trump retreats from his earlier budgetary and tariff-related commitments.
  • Capital inflows appear to be returning to US financial markets, as investors increasingly weigh President Trump’s erratic policy signalling against the backdrop of solid economic fundamentals.
  • Returning inflows to the US, coupled with the prospect of increased debt issuance should the US Senate pass the administration’s budget proposal, may pose headwinds for Indonesia and other emerging market economies.