Betting on US stimulus could come back to bite

Original article by David Rogers
The Australian – Page: 32 : 14-Feb-17

Sharemarkets have rallied in response to indications from US President Donald Trump of a major announcement on tax policy in coming weeks. Diana Mousina of AMP Capital warns that any move by the Trump administration to back away from its proposed tax cuts for companies and individuals would hit shares and US economic growth. However, an overly aggressive fiscal stimulus package would risk a spike in the inflation rate, which would most likely prompt a rise in interest rates. This in turn could derail the sharemarket rally.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, PERPETUAL INVESTMENTS, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC

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