Investors have had no shortage of political news to digest in recent days, with the unclear results of the Democratic Iowa caucuses and the impeachment trial in the U.S. Senate helping to guide stock-market sentiment, alongside the latest news on the coronavirus outbreak.
The Congressional Budget Office last week projected a federal budget deficit of greater than $1 trillion in 2020, with the gap exacerbated by rising Social Security and Medicare costs and the 2017 corporate tax cut, which was not offset by cuts in spending. He said he expects the president to “take a victory lap” on these agreements, but warned that there’s a chance the president announces new measures aimed at trade partners. “Any talk of additional tariffs could surprise the market, and that would dampen the optimism of the past couple days,” he said.
The remaining Iowa results will be released just before the State of the Union address to distract the voters!!