While Donald Trump is likely to lower US corporate taxes, bringing US dollars back into the country and rebuilding American infrastructure through a massive $1-trillion spending programme, the new President is coming in at the “US midnight”, Euro Pacific Capital founder and CEO Peter Schiff says. Markets are also factoring in a Federal Reserve rate rise this year and further rises next year, as the Fed moves to issue new treasuries into the market to cover Trump’s spending aspirations. The US Treasury might also need to print new US dollar bills to pay for Trump’s expenditure plans, a move which could reverse US dollar gains and allow the Fed to maintain lower rates for longer.
