US: Past the point of maximum fiscal impulse – ANZ

According to analysts at ANZ, the US economy is probably past the point of maximum fiscal impulse from President Trump’s stimulatory TCJA and BBA measures.

Key Quotes

“There is still further stimulus in the pipeline from these policy initiatives, but their contribution to growth is unlikely to be as strong as what has occurred in the first three quarters of 2018.”

“Our central view is that policy gridlock in Washington is likely to be a feature of the next two years of President Trump’s term, so additional fiscal stimulus measures are unlikely. This may not necessarily be a bad thing for risk assets.”