On 8 November 2016 Donald J. Trump was elected as the 45th President of the United States. In order to ‘make America great again’ he promised to slash tax rates and regulation, increase spending on infrastructure and get better trade deals for the US. However, the euphoria that swept the financial markets after Election Day has faded. Progress on President Trump’s legislative agenda has been slow and an increasing amount of time and energy in the White House and on Capitol Hill is spent on ‘Trumpgate’.
The impact of Trump’s policies on the US economy, the Fed’s monetary policy and financial markets has major implications for the world economy. Meanwhile, the ‘Trumpgate’ investigations could lead to attempts to remove the President from office. A number of scenarios could unfold in the coming years with different outcomes for the economy, the Fed and markets.