Donald Trump appears on track to blow out the US budget deficit and debt, in a Reagan-like fiscal loosening that could drive up global interest rates higher than anticipated.
Not that stock investors seem to care. The Dow Jones Industrial Average burst through a record 21,000 points Wednesday in New York (Thursday AEDT) following Trump’s toned down speech to Congress.
Yet unless fiscal conservatives in Congress act on their concerns about Trump’s unfunded big spending and tax cut plans, Australian home borrowers will be among those to feel the reverberations.
Economist Warwick McKibbin, a former Reserve Bank of Australia board member, is visiting Washington and reckons Trump is about to unleash a big fiscal stimulus that will…
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