US: Trump’s budget proposal was very light on details - BBH
|Analysts at BBH explains that the US President Trump's budget proposal was a single page consisting of less than 250 words and the broad strokes were very much in line with some of the suggestions during the campaign.
Key Quotes
“It was very light on details, and this seems to be deterring assessment of the fiscal impact. During the campaign, the Committee for Responsible Federal Budget anticipated it would produce a shortfall of $3 trillion in five years and $7 trillion over 10-years.”
“The budget proposal contained only one revenue increase, and that was the elimination of the deduction for state taxes. This could raise as much as $1.5 trillion for the Federal government and would be the most felt by three states that Trump did not carry (California, New York, and New Jersey). We suggest that it may be most politically realistic to see the proposal as a broad initial negotiating position, not as anything close to its final shape. If we had to characterize the markets' response, we'd say "unimpressed."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.