Goldman Sachs expect up to another USD 4 trillion in stimulus from Biden

News

Goldman Sachs say that ina addition to the $1.9tln approved last week

  • the next round of fiscal legislation … our economists (expect) a package that will include at least $2 trillion in infrastructure spending and could reach $4 trillion if it also funds health care, education, and child care initiatives. 

I do not know how the Fed can hold back rate hikes if another $4tln flows into the economy in fiscal aid. 

GS do add though:

  • Our economists expect the next package will be paid for in part by higher tax rates

So that’ll be some subtraction.

More from GS:

  • The tax plan proposed by President Biden in his election campaign would raise the statutory corporate tax rate on domestic income from 21% to 28%, partially reversing the cut from a rate of 35% passed in the 2017 Tax Cuts and Jobs Act. The plan would also raise the tax rate on foreign income (also called the “GILTI” tax) and institute a minimum corporate tax rate. 

Invest in yourself. See our forex education hub.

Articles You May Like

UK Preliminary Services PMI declines to 52.8 in March vs. 53.0 expected
Magnitude 5.4 earthquake hits Southern Italy
ForexLive European FX news wrap: Mixed markets with month-end, quarter-end approaching
Pound Sterling Price News and Forecast: GBP/USD recedes and consolidates around 1.2230
Gold Price Today: Yellow metal slips as banking crisis fears dissipate, dollar strengthens