I delayed writing about the impact of Trump’s victory in the US presidential election, primarily because I wanted more time to observe his policies. However, since US Fed is meeting this week to discuss interest rate rise, I will pen down my current thoughts. Things will change, as Trump might adjust his policies after he becomes president.
Since Trump’s surprise victory, stock markets have rallied strongly. Part of the reasons has to do with some of the positive policies proposed by him, such as infrastructure spending, tax cuts, reduced regulations on banks, etc. If enacted, these policies will increase aggregate demand and speed up the recovery of the US economy. This is a refreshing change, considering that we have had 8 years of loose monetary conditions and the economy has not improved much since the end of the Great Financial Crisis. In fact, risks have increased in some areas of …
Making America Great Again and Its Impact to Asia
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