The European Central Bank decided to leave interest rates unchanged at their January monetary policy meeting and continue its quantitative easing bond buying the current monthly pace of €80 billion until the end of March 2017.
From April 2017 the ECB’s net asset purchases will continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary.
Trump’ Favorability Rating Is Very Low
President elect Donald Trump will become inaugurated tomorrow in Washington at a time when his favorability rating is the lowest for an incoming president in at least 4 decades.
Based on the Real Clear Politic average of major polls from 12/14- 1/17/17, President elect Trump has a 41 percent favorability rating and a 49.5 percent unfavorable rating.
President Obama had a 71 percent approval rating before his inauguration in January 2009 and Bill Clinton had a 77 percent approval rating before he was inaugurated in 1993.
President elect Trump is entering the White House when the U.S. dollar has reached climbed to a 14 yr. high in January and more interest rates are expected in 2017 due to a stance of monetary policy tightening from the Federal Reserve that could make it difficult for the dollar to weaken.
During the 3rd quarter of 2016, U.S. GDP rose to 3.5 percent in its 3rd estimate.
U.S. equities rallied in December in the so called Trump rally, led by the financial sector which saw some of the strongest gains.
Investors have been optimistic that Trump’s fiscal plans for tax cuts, infrastructure spending, and smaller government will help to generate growth.
Trump didn’t address his plans for infrastructure spending during his press conference last week and some investors are left questioning whether his fiscal stimulus plan will materialize.