Vice President Biden appears set to be the 46th President of the United States, most likely with a divided Congress. A split Congress has two opposing effects on growth. On the positive side, it should mean that more centrist policies are likely to be pursued, all of which are constructive for growth. Conversely, a Republican controlled US senate is likely to pursue a material decline of the US fiscal deficit, which is set to underpin a large US fiscal drag in 2021.
Click here to read more on Perpetual Investments’ thoughts on the US economy amidst the change of Presidency and the surging pandemic.