US and World Economy and Markets after confirmation of Democrat controlled congress
Posted: January 7th, 2021, 6:19 am
Hi folks,
So now it seems that the Democratic Party of the US, will have control of both the White House and Congress:
Raphael Warnock, a Baptist preacher from Martin Luther King Jr.’s former church, beat Republican incumbent Kelly Loeffler to become the first Black senator in the deep South state’s history while Democrat Jon Ossoff, a documentary filmaker who at 33 will be the Senate’s youngest member, beat Republican David Perdue.
The Georgia results are a last-minute repudiation of outgoing President Donald Trump, who stands to be the first U.S. president since 1932 to lose the White House and both chambers of Congress in a single term.
Democrats now have narrow control of both chambers of Congress, making it easier to appoint liberal-leaning judges and advance legislative priorities from coronavirus relief to climate change when Biden takes office on Jan. 20.
“Georgia’s voters delivered a resounding message yesterday: they want action on the crises we face and they want it right now,” Biden said in a statement. He said he would work with both parties to confirm key administration officials quickly.
https://uk.reuters.com/article/uk-usa-e ... KKBN29B17K
So I'm wondering what opinions people have on the effect this will have on both economies and the markets going forward. At a rough guess, we may see higher corporate taxes, but more stimulus both monetary and fiscal.
The dollar may continue to weaken as more are printed, US equities may shrug off corporate taxes hikes, if there are any, since bank rates will remain very low. Presumably trade war uncertainty will wither away.
What firms will benefit and which will suffer? I guess green energy will be boosted, fossil fuels restricted, tech and pharma will be largely ignored. But these are all guesses, what do others think?
thanks Matt
So now it seems that the Democratic Party of the US, will have control of both the White House and Congress:
Raphael Warnock, a Baptist preacher from Martin Luther King Jr.’s former church, beat Republican incumbent Kelly Loeffler to become the first Black senator in the deep South state’s history while Democrat Jon Ossoff, a documentary filmaker who at 33 will be the Senate’s youngest member, beat Republican David Perdue.
The Georgia results are a last-minute repudiation of outgoing President Donald Trump, who stands to be the first U.S. president since 1932 to lose the White House and both chambers of Congress in a single term.
Democrats now have narrow control of both chambers of Congress, making it easier to appoint liberal-leaning judges and advance legislative priorities from coronavirus relief to climate change when Biden takes office on Jan. 20.
“Georgia’s voters delivered a resounding message yesterday: they want action on the crises we face and they want it right now,” Biden said in a statement. He said he would work with both parties to confirm key administration officials quickly.
https://uk.reuters.com/article/uk-usa-e ... KKBN29B17K
So I'm wondering what opinions people have on the effect this will have on both economies and the markets going forward. At a rough guess, we may see higher corporate taxes, but more stimulus both monetary and fiscal.
The dollar may continue to weaken as more are printed, US equities may shrug off corporate taxes hikes, if there are any, since bank rates will remain very low. Presumably trade war uncertainty will wither away.
What firms will benefit and which will suffer? I guess green energy will be boosted, fossil fuels restricted, tech and pharma will be largely ignored. But these are all guesses, what do others think?
thanks Matt