120 days ago • Posted by Charles-Henry Monchau

Goldman believes in a broad fiscal stimulus deal in December

Goldman Sachs: "This has become the more likely scenario, in our view, for three reasons: 1) Neither party has as much to gain from postponing passage since Senate control looks less likely to change than it seemed prior to the election; 2) The upcoming runoff elections in Georgia might make Senate Republicans more eager to reach a deal, as they will want to avoid any perception the Republican majority is an obstacle to fiscal relief; 3)  As noted above, some fiscal measures are likely to pass in December along with the spending bill, and political tradeoffs might make it easiest to just pass the broader bill at that point" However, fiscal measures will probably come too late to affect Q4 growth. Size? base case is a fiscal stimulus package of around $1 trillion (a little less than 5% of GDP). Source: The Market Ear

U.S Fiscal package likely in December