Economics
Trump’s Stimulus Shock Seen Opening the Door for More Fed Action
- Evercore sees increased chance of boost to Fed QE program
- BTIG says bad stock-market reaction could still restart talks
This article is for subscribers only.
President Donald Trump’s nixing of further stimulus negotiations raises the chance of more steps from the Federal Reserve, and delays -- rather than eliminates -- the potential for further fiscal aid, according to strategists.
While some expressed their astonishment at Trump’s move, others suggested it was in line with his election strategy of seeking to blame the Democrats for the economy. His declaration forces a recalibration of thinking for Wall Street, which had been largely factoring in another stimulus package.