Trump the Keynesian?
Fighting off the next recession, according to Grant Williams, the author the research letter “Things That Make You Go Hmmm” and co-founder of RealVision Television
“Because, we were for a long time, 7 years, without a recession in the US,” he continued. “We are overdue one. And some of the data that’s been coming out in the last couple of quarters suggests that we are very close to one.” Following the 2008 financial crisis, central bankers unleashed ultra easy monetary policy. One of the efforts involved the Federal Reserve making large-scale purchases of bonds, aka quantitative easing. In the eight years since the crisis, interest rates remain at or near zero, and in some parts of the world they’re negative. The Fed’s policies were meant to encourage the consumer to spend and thus stimulate the economy. “It seems to me at the grassroots the consumer is not doing too well. As goes consumption, so goes the US economy. I think [Trump] definitely needs to be weary of this.” View photos President-elect Donald J. Trump More Williams told Yahoo Finance that if Trump is aggressively stimulatory and we get some reflation “maybe he can hold it off.”
Donald Trump appears doomed to inherit the next recession
Except... if he turns into a super Keynesian and embarks on a combination of tax cuts and additional spending. On infrastructure, no less. Which is what his political adversaries have clamored for for years, but this insn't probably all that it seems: