The Great Budget Bill Dichotomy -- Higher Fiscal Deficits Coupled With Less Stimulus
Budget bill restricts, offers no real stimulus
Highlights
• Budget bill restricts, offers no real stimulus
• Lesser fiscal drag still pressures growth outlook
• Bullish sentiment jumps as the market approaches prior highs
• Dovish Fed speak, Senate resistance calm bond markets
Key Takeaways
• Fed Doves, Fiscal Pushback Soothe Markets: The bond market has quieted down following dovish comments from Fed Governor Christopher Waller on FOX Business to the effect that he sees no inflation persistence from the tariff hikes, as well as the pushback among some key Senate fiscal hawks on the House budget bill.
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