Sixteen Nobel Prize-winning economists caution that Trump's policies could spark a resurgence of inflation.

Sixteen Nobel laureate economists have signed a letter cautioning that a re-election of former President Donald Trump would harm the US economy and contribute to higher consumer prices. Released on Tuesday, the letter criticizes Trump's "fiscally irresponsible budgets" and warns of potential instability and renewed inflation under his leadership.

"The rule of law, economic and political certainty, and stable international relationships are crucial for economic success, particularly for a country like the US deeply integrated into global norms," the letter states, expressing concern that Trump's policies could undermine stability and America's global reputation.

The economists also praised President Joe Biden's economic record, highlighting a strong and equitable recovery in the labor market post-COVID-19 pandemic. They endorsed Biden's economic agenda, which they believe promotes productivity, economic growth, and mitigates long-term inflationary pressures through investments in infrastructure, domestic manufacturing, and climate initiatives.

Signatories of the letter, reported by Axios, include renowned figures like Columbia University's Joseph Stiglitz, Yale's Robert Shiller, and Sir Angus Deaton. Despite Biden and Trump polling closely ahead of their first debate, recent surveys indicate a greater voter trust in Trump regarding the economy and inflation issues.