What to Expect Come January 20, 2017
November 28, 2016
Written by Rebecca Feeley
Merrill Lynch recently did another one of their educational webcasts called “Beyond the Elections: What Washington’s new leadership could mean for you” where they had a panel of economic and political experts discuss the aftermath of the Presidential election…and what we can expect going forward. I want to be clear here that I’m simply regurgitating what the professionals have said, and so, this is meant to be completely politically unbiased on my part! Here’s what I took away from the webcast:
- We witnessed a harsh market decline at the opening on November 9 because most investors were predicting a Hillary win on Tuesday evening, but the rebound was much more swift than anticipated.
- We’ll see far less gridlock in Washington now that the President and congress will be on the same “side”, so to speak.
- Having said the above (#2), conservatives in congress like Paul Ryan, are extremely concerned with the deficit and will be sure to push back on some of the items on President-elect Trump’s agenda. Think tax cuts, increased infrastructure spending, increased military spending, and maintenance of Social Security and Medicare…all of which are sure to effect borrowing at the Federal level.
- Since President Obama issued several executive orders in recent years, President-elect Trump will have the ability to unwind quite a bit of policy without having to involve congress at all.
- The economic “wild card” will be President-elect Trump’s ability to push trade reform and bring jobs back to U.S. soil which was the cornerstone of his campaign.