Earlier today the US dollar stopped its upwards movement against other currencies. The price of stocks of American banks also fell; both of these events were the result of increasing doubts regarding President Trump’s tax reform.
The markets appear to have reacted to news that changing the American tax system will likely take longer than anticipated, if it happens at all. Trump’s proposal still faces disapproval by both Democrats and a significant part of Republicans in Senate as well. Furthermore, the current proposal is incomplete and the administration still has to work out a more specific plan to organize the tax reform, before Senate can vote on it.
In the current economic climate of the United States some investors are suggesting that despite the all-around positive statistics, there could actually be difficult times for the economy coming. Bonds yields in the US, as well as Europe, have lately been turning towards flat trends. The discrepancy between the Federal Reserve, who is determined to increase interest rates in December, and the flattening bond yields is a signal that analysts doubt we would continue to see such strong economic reports from the US.
