Trump is likely to propose new cuts, potentially including corporate taxes, according to BII. Congressional budget procedures allow deficit increases over the next decade, likely meaning persistent budget deficits – one factor that BII thinks will push up long-term treasury yields.
A Trump win opens the door for tax cuts, deregulation and tougher trade policy, says Blackrock Investment Institute (BII) following the US Presidential election which concluded on Nov 6.
Analysts at BII say that control of the House of Representatives would give the second Trump administration broader powers to enact its tax, energy, trade and regulatory agenda. Republican control of Congress is key for the former US President to extend expiring tax cuts and job acts provisions, they note.
