Leading with a Trump

The macroeconomic implications of a new Trump administration are sparking fervent debate. Financial markets have responded to last week’s news with heightened expectations of some fiscal stimulus which could spur US growth in the near term. However, that boost may come at the cost of higher domestic inflation, more elevated public debt, and a ripple of adverse effects across the world economy. In our charts this week we illustrate some of the forces at play with some colour on:

·      Global current account imbalances

·      US financial imbalances

·      Financial market depth indicators

·      Major holders of US Treasuries

·      US Participation in Value Chains

·      Energy policy