US President Joe Biden’s $2trn infrastructure spending plan is expected to give a “significant” boost to long-term growth potential, but a reversal of monetary and fiscal policy is likely to lead to a growth slowdown for the global economy, commentators have warned.
According to Azhar Hussain, global head of credit at Royal London Asset Management, the US has been the "most effective" economy in its leverage of coordinated fiscal and monetary policy to regenerate its economy. "This has had a huge positive indirect impact on global markets over the last year," he said. "As we see a reversal of these policies the global economy is likely to suffer with lower growth. As China and Europe are mired in their own stresses over debt funded growth these will be compounded by the US unwinding its fiscal and monetary supports." S&P500 and Nasdaq fall aft...
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