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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.

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