Right so Donald Trump is going to be talking about numbers today and that’s always fun. Specifically, he’s going to unveil his budget and also his infrastructure proposal.
Notably, he’s apparently going to just go ahead and abandon GOP dogma when it comes to balancing the budget.
“On Monday, Trump is slated to announce a new budget plan that will no longer seek to eliminate the deficit over the next decade, forfeiting a major Republican goal,” the Washington Post wrote on Sunday evening, citing three people familiar with the document.
Although he will shout about “a range of spending cuts” aimed at “reducing the growth” of the deficit, any effort to actually balance the federal budget is out the window and s**t, it’s not hard to understand why. I mean, after all, he’s just crammed a deficit-funded tax cut for corporations and rich people down America’s throat and last week he signed a bipartisan budget deal that lifts spending caps by $500 billion and suspends the debt limit. On top of that, he wants “bigly” infrastructure spending and is hell-bent on wasting tens of billions of dollars on his Mexican-be-gone wall and just to add fiscal insult to fiscal injury, he wants to waste another couple of million on a goddamn military parade.
So yeah, fiscal discipline is out the window.
As we’ve noted on countless occasions of late, piling this kind of fiscal stimulus atop an overheating economy is a recipe for disaster and it’s also a recipe for higher yields and an aggressively hawkish Fed.
“You have to say that… Powell has his work cut out for him,” said Greg Valliere, chief global strategist for Horizon Investments told WaPo. “I would not be surprised to see friction develop between Trump and Powell. Trump may get tired of seeing the Fed raise rates.”
Right. Remember what we said last week? To wit, from a Dealbreaker post:
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