Join our community of smart investors

Biden threat to emerging markets

President Biden's proposed fiscal stimulus could boost the US dollar. If it does, emerging markets would suffer.
Biden threat to emerging markets

President Biden is a danger for investors in emerging market equities.

I say so for a simple reason. He’s planning on a massive loosening of fiscal policy: Democrats hope to get a $1.9 trillion stimulus package (equivalent to almost 9 per cent of GDP) through Congress by next month.

This could raise interest rates simply because people will spend at least some of the $1,400 cheques they get as part of the package – which could raise inflation.

To continue reading...
Register for free
Read 3 articles for free each month
* Excl. premium articles
Have an account? Sign in