Economics
Stimulus Is ‘Infinite,’ Mike Mayo Says After Gary Cohn Talks
- There’s also concern about higher taxes and real estate woes
- Mayo sees the biggest banks as better positioned for benefits
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The main positive takeaway from a meeting with President Donald Trump’s former economic adviser Gary Cohn was that government stimulus to stem the effects of the Covid-19 crisis may be “infinite,” according to Wells Fargo analyst Mike Mayo.
In the short term, there’s potential for “wave after wave of support for the economy and unemployed workers; the desire to do so should remain so long as there is a quarantine,” Mayo wrote in a note. Moreover, he added that “the return of consumer spending in the U.S. should not be underestimated.”