A New York judge on Friday upheld President-elect Donald Trump's criminal conviction while hinting at leniency in sentencing, a significant twist in a high-profile legal battle.

Judge Juan M. Merchan indicated he would likely issue an unconditional discharge, a rare outcome that avoids jail time or probation and allows Trump to pursue appellate options, The New York Times reports.

What Happened: Merchan, in an 18-page decision, ruled against overturning the Manhattan jury's May conviction of Trump on 34 counts of falsifying business records. The charges stemmed from allegations that Trump orchestrated hush money payments during his 2016 campaign to suppress a sex scandal.

Merchan also rejected Trump's claims that his conviction violated presidential immunity or should be dismissed in light of his recent election victory, the New York Times reports.

The sentencing, scheduled for Jan. 10, ensures Trump's felony status will stand as he takes the oath of office later this month. Prosecutors had pushed for accountability, while the defense argued that any punishment would disrupt Trump's ability to govern.

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Why It Matters: Trump's impending sentencing solidifies his position as the first U.S. president to assume office with a felony conviction. Merchan's decision highlights the judiciary's role in balancing presidential immunity concerns against the principle of equal accountability under the law.

Trump's legal team could still pursue an appeal to delay sentencing, further entwining legal and political challenges as his presidency begins.

Adding broader implications, concerns over Trump's economic strategies — termed "Maganomics" — have resurfaced. Economists have raised fears of inflationary policies and long-term instability, despite short-term growth projections. Experts warn Trump's return could amplify economic unpredictability, impacting markets and global relations.

As legal scrutiny and economic uncertainty converge, Trump's presidency is poised to navigate uncharted territory, shaping both domestic policy and international perceptions.

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