The stimulus is not going to come as Trump’s proposed tax cuts will hit government revenue while the Congress is likely to block his stimulus plans as the U.S. is already $20 trillion in debt, This will lead to a recession or a “very severe correction” in the stock market, prompting rate cuts later next year, prompting the Fed to cut rates.
Key Takeaways:
- The Federal Reserve hiked interest rates just two weeks ago for the second time in a decade, but it will soon be cutting them again, said Jim Rickards on Tuesday.
- Speaking to CNBC’s Squawk Box, the director of The James Rickards Project said a stock market correction is coming as President-elect Donald Trump’s economic stimulus plans will not pan out, causing a “head-on collision” between perception and reality.
- When the reality of no stimulus catches up with the perception of stimulus plus the Fed tightening: that’s the train wreck.
“The Federal Reserve hiked interest rates just two weeks ago for the second time in a decade, but it will soon be cutting them again, said Jim Rickards on Tuesday.When the reality of no stimulus catches up with the perception of stimulus plus the Fed tightening: that’s the train wreck.”
http://www.cnbc.com/2016/12/26/recession-market-crash-next-year-expect-rate-cuts-rickards.html
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