With President Donald Trump trailing Joe Biden by wider and wider margins in recent weeks, Wall Street has begun to brace for the return of a Democratic White House.
Finance professor David Kass, at the University of Maryland’s Robert H. Smith School of Business, has been explaining what a Biden administration would mean for corporations and for the economy. He sees a moderate White House under the former vice president, one that keeps the United States “favorable” for investors and the economy.
David Kass is available for phone and teleconference interviews. A summary of some of his insights is available for use, here:
“As the economy continues to recover from COVID-19 in 2021 and beyond, both the president and Congress will pursue programs providing a social safety net for the unemployed and do whatever is needed to stimulate the economy. Despite the higher taxes that will result to both businesses and investors, I expect Biden to pursue moderate policies consistent with his decades of experience as a vice president and senator, rather than the more extreme proposals of several of this year's presidential candidates,” Kass says.
“Overall, I expect a continuing favorable climate for investors and the economy. The president and Congress should provide a stimulative fiscal policy, while the Federal Reserve will continue to provide an accommodative monetary policy with short-term interest rates expected to be close to zero through at least the end of 2022. This should provide a very favorable backdrop for the economy, businesses, and investors.”
He continues, “The greatest risk to the economy in the foreseeable future is the path of COVID-19. There cannot be a full recovery until there is a widely available vaccine. A Biden presidency is likely to lead to a more coordinated effort among the states to address this issue. Experts are predicting that a vaccine should be available within 12 to 18 months.”
ABOUT THE EXPERT: David Kass has served as an economist in senior positions with the Federal Trade Commission, General Accounting Office, Department of Defense, and the Bureau of Economic Analysis. He also is active on Twitter (@DrDavidKass) and blogs about Warren Buffett, Berkshire Hathaway and the stock market.