Goldman Sachs expect up to another USD 4 trillion in stimulus from Biden

Goldman Sachs say that ina addition to the $1.9tln approved last week

• the next round of fiscal legislation ... our economists (expect) a package that will include at least $2 trillion in infrastructure spending and could reach $4 trillion if it also funds health care, education, and child care initiatives.

I do not know how the Fed can hold back rate hikes if another $4tln flows into the economy in fiscal aid.

GS do add though:

• Our economists expect the next package will be paid for in part by higher tax rates

So that'll be some subtraction.

More from GS:

• The tax plan proposed by President Biden in his election campaign would raise the statutory corporate tax rate on domestic income from 21% to 28%, partially reversing the cut from a rate of 35% passed in the 2017 Tax Cuts and Jobs Act. The plan would also raise the tax rate on foreign income (also called the "GILTI" tax) and institute a minimum corporate tax rate.