The weekend news from the US on Trump's Executive Orders after Congoress failed to reach a deal:

The EO's were on:

  • payroll tax
  • student loan interest
  • rental eviction
  • unemployment benefits

In brief comments via GS, the investment bank says more will be needed to be done:

  • Trump issued executive orders in the four policy areas that had been expected.
  • The extra $400 unemployment payment is likely to last only a month, however.
  • The payroll tax deferment would last through year-end, but consumers might be hesitant to spend extra income without a change in tax law.
  • That said, both policies could put pressure on Congress to agree to a broader fiscal package. We continue to expect a package worth around $1.5 trillion to become law in August.
  • The new executive orders create two deadlines around the end of the month, which could provide a new incentive for Congress to act.