Trump’s plan to reduce taxes and favor domestic companies supports economic growth, but deepens the US budget deficit and accelerates inflation, SEB private banking strategist Sander Danil said.
“All of this leads to the fact that the pressure of inflation is significantly stronger, interest rates are increasing, and the USA still spends most of its state budget purely to cover interest costs,” Danil said in the morning program of Äripää radio. However, against this background, the popularity of US government bonds has decreased, he added.
In the interview, Danil discussed whether Europe should copy the US steps and why Europe would be the loser in the trade war. He also pointed out which companies could gain momentum after Trump’s presidency and which sectors would lose.
Danil also talked about how the German government crisis affects the European economy and markets and what effect it may have on the European stock markets.
Hando Sinisalu asked.
Trump will bring economic growth, but also inflation and other problems
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Source: www.aripaev.ee
