Wall Street economists are reversing their stance on President Donald Trump's policies.
Before the president took office, many experts were raising their economic forecasts based on the changes they expected Trump to bring to taxes, infrastructure stimulus and regulatory rollbacks. But two weeks into his presidency, Wall Street is beginning to worry about the impact of the president’s immigration and trade policies on markets.
Goldman Sachs economists outlined several concerns, according to Bloomberg, including that Trump’s determination to push through the immigration policies he campaigned on could hurt the U.S. economy. If Trump succeeds in deporting 11 million undocumented immigrants, a Center for American Progress study said it would reduce cumulative GDP by $4.7 trillion over 10 years.
In addition, Republicans push to override Obamacare is foreshadowing continued difficulties. Investors riding the "Trump bump" were hoping the administration could push through policy changes, especially those impacting taxes and stimulus, quickly and decisively. But the difficulties the Republican-controlled Congress is facing replacing the Affordable Care Act while coming up with an alternative suggests slow action ahead for the president's other plans, including tax cuts, infrastructure spending and financial deregulation. [Bloomberg]
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