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Economics

How Nevada’s Republicans made their primary irrelevant

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PARTICIPATING IN Nevada’s Republican primary this year is a bit like playing a choose-your-own-adventure game. Your first choice is between voting in the state-run primary election or the caucus put on by Nevada’s Republican Party. You pick the February 6th primary, since the state has kindly mailed you a ballot. But wait: Donald Trump, your preferred candidate, isn’t listed. Instead you can choose between Nikki Haley, two people who are no longer running and four others you have never heard of. What if you picked the caucus on February 8th? Well, then you can vote for Mr Trump or Ryan Binkley, a pastor from Texas. Fans of Ms Haley are out of luck.

How did Nevada end up with duelling Republican primaries? In 2021 the state legislature passed a law replacing the caucuses run by the Democratic and Republican parties with state-run primaries on the first Tuesday of February. The move was intended to boost Nevada’s importance in presidential-primary elections by holding them earlier and making them more representative of the electorate. President Joe Biden and the Democratic National Committee endorsed the change. Nevada and New Hampshire would vote on the same day, behind only South Carolina.

The bill was bipartisan, but the Nevada Republican Party revolted. Michael McDonald, its chairman and an ardent supporter of Mr Trump, argues that the party objected to the primary because it didn’t require voter-ID. He feared that Democrats, and specifically members of the powerful culinary union, would change their party preference on the day of the poll to skew the results of the Republican primary. To exert control, Republicans decided to put on a caucus. The result is two votes in three days and utter confusion.

If a candidate is on the primary ballot they are barred from participating in the caucus, which is the only way to win any of the state’s delegates. Ms Haley has suggested that Mr Trump’s allies in Nevada pushed for a caucus to help his chances. When she was asked why she decided to participate in the meaningless primary instead, she said her campaign would “focus on the states that are fair”. Mr McDonald—who along with several other high-profile Nevada Republicans recently pleaded not guilty to charges alleging that they tried to falsely pledge Nevada’s electoral votes to Mr Trump in 2020—denies that the party put its thumb on the scale.

The duelling primaries have probably not changed the outcome of the contest. But they have changed politics in the Silver State in two ways. First, voters are miffed that they are being denied an actual choice between the top two candidates. While waiting in line to enter a Trump rally in Las Vegas on January 27th, several said they were baffled when they opened their primary ballot and didn’t see Mr Trump’s name. Karen Marrs, a Las Vegan, says she does not trust the party. “I’m going to do what Trump tells me to do,” she explains.

Nevada is not the only important swing state where a chaotic Republican Party could be a liability in November. Republicans in Michigan mutinied against their MAGA party chair, and Arizona’s party chairman resigned on January 24th after a recording revealed that he had tried to bribe Kari Lake, a Trumpian provocateur, to stay out of politics.

Second, caucuses are less likely than primaries to reveal how voters will act in November because fewer people take part. Queuing for hours in churches and schools requires more time from voters than posting a ballot. Because Nevada is one of just six states that will in effect decide the presidential election, the opinions of voters there have outsize importance.

Mr Trump encouraged Nevadans to caucus during his rally. But in his remarks he revealed the vote’s irrelevance. “Don’t waste your time on primary,” he urged. “Waste all of your time on caucus.”

Economics

Tariffs to spike inflation, stunt growth and raise recession risks, Goldman says

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U.S. President Donald Trump announces that his administration has reached a deal with elite law firm Skadden, Arps, Slate, Meagher & Flom during a swearing-in ceremony in the Oval Office at the White House on March 28, 2025 in Washington, DC. 

Andrew Harnik | Getty Images

With decision day looming this week for President Donald Trump’s latest round of tariffs, Goldman Sachs expects aggressive duties from the White House to raise inflation and unemployment and drag economic growth to a near-standstill.

The investment bank now expects that tariff rates will jump 15 percentage points, its previous “risk-case” scenario that now appears more likely when Trump announces reciprocal tariffs on Wednesday. However, Goldman did note that product and country exclusions eventually will pull that increase down to 9 percentage points.

When the new trade moves are enacted, the Goldman economic team led by head of global investment research Jan Hatzius sees a broad, negative impact on the economy.

In a note published on Sunday, the firm said “we continue to believe the risk from April 2 tariffs is greater than many market participants have previously assumed.”

Inflation above goal

On inflation, the firm sees its preferred core measure, excluding food and energy prices, to hit 3.5% in 2025, a 0.5 percentage point increase from the prior forecast and well above the Federal Reserve’s 2% goal.

That in turn will come with weak economic growth: Just a 0.2% annualized growth rate in the first quarter and 1% for the full year when measured from the fourth quarter of 2024 to Q4 of 2025, down 0.5 percentage point from the prior forecast. In addition, the Wall Street firm now sees unemployment hitting 4.5%, a 0.3 percentage point raise from the previous forecast.

Taken together, Goldman now expects a 35% chance of recession in the next 12 months, up from 20% in the prior outlook.

The forecast paints a growing chance of a stagflation economy, with low growth and high inflation. The last time the U.S. saw stagflation was in the late 1970s and early ’80s. Back then, the Paul Volcker-led Fed dramatically raised interest rates, sending the economy into recession as the central bank chose fighting inflation over supporting economic growth.

Three rate cuts

Goldman’s economists do not see that being the case this time. In fact, the firm now expects the Fed to cut its benchmark rate three times this year, assuming quarter percentage point increments, up from a previous projection of two rate cuts.

“We have pulled the lone 2026 cut in our Fed forecast forward into 2025 and now expect three consecutive cuts this year in July, September, and November, which would leave our terminal rate forecast unchanged at 3.5%-3.75%,” the Goldman economists said, referring to the fed funds rate, down from 4.25% to 4.50% today.

Though the extent of the latest tariffs is still not known, the Wall Street Journal reported Sunday that Trump is pushing his team toward more aggressive levies that could mean an across-the-board hit of 20% to U.S. trading partners.

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