You might be overjoyed that Trump will soon become the 45th president of the United States, or you might dislike it, or you might not care much either way. In any event though, many investors understand that the new president could affect the US economy, and as a result – global economy. It now looks like the World Bank likes some of Trump’s planned policies, most particularly his intention to introduce tax cuts alongside with spending plans.
Why is the World Bank pleased? The new administration could boost the U.S. economy, potentially encouraging growth worldwide. There is a ‘But’ though. You knew it was coming, right? The ‘But’ is that Trump’s talks about new trade barriers could lead other countries to set their own barriers, potentially ruining any gains from his positive economic plans.
Does anyone know for a fact what will happen after January 20th? Of course not. This is a complex situation and nothing is certain about the new policies, the new president or the trade relations between US and other countries.
It’s also important to point out that there could be a situation where the new president and the Fed pull in opposite direction, creating inner tensions within the US economy.
Do you believe you know how the change in US administration impacts the economy? Stay informed, read market news and analysis and take advantage of opportunities.