The Republican sweep, after the party took the White House, Senate and House of Representatives in the recent US elections, could potentially lead to faster US economic growth, but also higher government debt and deficits, increased trade tensions and tariffs, and, most likely, a stronger US dollar, says John Mensack, Schroders’ senior investment director of fixed income.
US president-elect Donald Trump’s second term could be reflationary for the US economy, say fixed income experts at Schroders, citing the pro-growth policies he put forth during his campaign.
Still, given the time it will take to enact these policies, their full impact may not be felt until 2026, reads a Nov 25 note by the British asset manager.
