The rough fiscal-stimulus outline offered by President-elect Trump could lift U.S. economic growth to 2.3% in 2017, according to the Organization for Economic Cooperation and Development. That’s up from its projection for 1.9% growth in 2017 without the Trump plan. It also projects 3% growth up from 2.2%, for 2018. Trump pledged to add $1 trillion to U.S. infrastructure. It estimates global growth at 3.3%, up from 3.2%, in 2017, and 3.6% up from 3.3%, for 2018. The biggest risk to its outlook is protectionism, especially pledged U.S. tariffs on imports from China and Mexico, which could offset the boost from higher government spending and lower taxes. The OECD is first international economic policy agency to publish an estimate of the impact of Trump’s proposals.
Treasury prices rebounded this morning, driving yields lower, as an aggressive post-election selloff showed signs of exhaustion ahead Friday’s jobs report. The 10-year yield fell 3.3 basis points to 2.33%.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
