Goldman Sachs says more fiscal measures are coming in the US, but arguably not as much as what Biden had touted earlier
In case you missed it, US president-elect, Joe Biden, outlined a $1.9 trillion proposal earlier in the day with the details can be found here. An excerpt from Goldman Sachs:
President-elect Biden has released the details of his COVID-relief plan, which the transition team estimates to cost $1.9 trillion (8.6% of GDP). We do not expect all of the elements of the proposal to pass, but we are increasing our assumption of additional near-term fiscal measures from $750bn (3.4% of GDP) to $1.1 trillion (5% of GDP). We expect to make modest further upward revisions to our forecast in light of these revised assumptions.
I'm assuming their forecasts would be related to the US economic outlook as their note does speak of the numbers in terms of GDP value.
The market reaction so far is less enthusiastic than the lead up to Biden's proposal. 10-year Treasury yields are now down 3.2 bps to 1.096% currently. Sell the fact?