The big proposals President Trump is set to put forward vary from balancing the budget to very favorable economic decisions from Capitol Hill that potentially could increase both business activity and personal consumption. The major seven initial sets President Trump has listed on his website are, U.S. – China Trade Relations, Protecting Second Amendment Rights, Immigration Reform, a border wall between the U.S. and Mexico, Veteran’s Administration reform, health care reform, and a tax reform. The costs of these expected plans for Trump’s proposals cause anywhere between $10 trillion to $15 trillion dollars over the next years. This would increase U.S. debt over the next decade and possibly add new debt. The debt we could potential be looking at in 2026 is near $36 million dollars if these proposals get funded. Another concern is the controversy the public has over the tax reform. If the administration gets these reforms pushed through Wall Street will be very happy, but a shareholder of a public company that gets traded may be upset if their tax bill drops by millions of dollars. The Trump Administration expects economic growth in large numbers if the tax reform happens, but many skeptics believe otherwise. However, the bond market unlike the stock market is slowly discounting Trump’s agenda when it comes to economic growth. We aren’t sure what will happen, but we are watching it closely. We are eager to see what happens with the Federal Reserve raising interest rates. Depending how the short side rises and long side falls, or if the yield curve flattens would be an impact we need to pay careful attention to.
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