By Selina Stoller, SAF Holdings, LLC
It’s been a little over a year since Donald Trump was elected president and Washington has been rapidly changing ever since. It’s a challenging arena for investors to understand and although the gross domestic product has been growing, the labor market is healing, and interest rates have remained steady, there are aspects of politics that affect markets. Here are a few:
Uncertainty Surrounding Tax Cuts
Politico reports that there is still no agreement on key ingredients in the tax bill between the House and the Senate that are causing tension between the GOP and Republicans from the Northeast and California. Some of these details could take several months to figure out.
An Increasing Deficit
The federal government began its new budget year with an October deficit of $63.2 billion, up sharply from a year ago. The Treasury Department reported that the October deficit was 37.9 percent higher than the $45.8 billion deficit recorded in October 2016. Both government receipts and spending were up for the month, with receipts climbing 14.3 percent to $235.3 billion, a record for the month of October. The larger spending figure was up a sizable 11.6 percent to $298.6 billion.
With tensions rising between the United States and North Korea it has some economists worried about how tensions will affect South Korea’s economy. Politico reported that President Trump returned from his Asia tour with few, clear wins. The president says he strengthened his friendships and pointed to billions in new deals – but he failed to extract major concessions from China and others abroad.
- 1 Dec, 2017
- Josh Smith