Now that the Associated Press has declared Joe Biden the winner of the 2020 Presidential Election let's take a look at what we might expect from the presumed 46th president and the kind of economy he will inherit – and what he plans to do with it.
Thanks largely to his predecessor, Biden starts off with an inherently strong economy, even as it continues to heal and deal with Covid-19. Assuming that Biden doesn't follow his own comments and some of his advisors about imposing another lockdown, we can probably expect that the economy will eventually get back to the 2-3% annual growth rate we enjoyed before the pandemic.
Biden will also likely benefit from the recently announced introduction of a Covid-19 vaccine, although a lot needs to be done first, like manufacturing and then distributing hundreds of millions of doses worldwide, which will take some time. But assuming the vaccine is as efficacious as Pfizer says it is, that will be a further elixir for economic growth.
It's hard to imagine a Federal Reserve friendlier to the financial markets than the current one, so Biden will benefit from that as well. Biden is also not likely to be a thorn in Jerome Powell's side as much as the current White House occupant. Continue reading "What To Expect Under A Biden Presidency"