Trump’s Promised Stimulus Won’t Happen This Year

Stan Collender: “Donald Trump’s insistence that his tax and spending plans will provide an immediate kick to the U.S. economy and Wall Street’s belief that the new administration’s budget policies will lead to a quick boost in corporate profits now need to be tempered with a big dose of economic reality: The president’s promised fiscal stimulus isn’t going to be enacted or take effect any time soon. If it happens at all, the soonest the economy will begin to feel the impact of a Trump stimulus is in federal fiscal year 2018, that is, starting 7 months from now on October 1. And even October 1 is optimistic.”

“Part of the reason for this is how long it’s taking for Congress to do what the day after Election Day was considered to be a slam-dunk: repeal the Affordable Care Act. The controversy between and among congressional Republicans is now so multifaceted, heated and chaotic that the delay could soon make it far more difficult for the House and Senate to deal with both ACA and tax reform.”