SocGen's Albert Edwards: 'Fragile' US economy will be exposed

When tax reform 'sugar rush' wears off

Tom Eckett
clock • 1 min read

Société Générale's bearish strategist Albert Edwards has warned the US economy is set for an "unpleasant" turn once US President Donald Trump's stimulus package wears off in 2019.

In contrast to Trump's "Marmite" character, however, Edwards noted how investors had "gorged" themselves on his tax reform. US equity markets have been in a euphoric state since Trump passed his historic Tax Cuts and Jobs Act reform, which saw corporation tax cut from 35% to 21%. He added Trump's fiscal stimulus was ill-timed for where the US economy is in the economic cycle but "perfect" for the electoral cycle. US midterms: Damp squib or another 'sugar rush' for US economy? "People either love or loathe Trump. He is like Marmite," Edwards said. "But you have to be wary when bi...

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