The weekend news from the US on Trump's Executive Orders after Congoress failed to reach a deal:
The EO's were on:
- payroll tax
- student loan interest
- rental eviction
- unemployment benefits
In brief comments via GS, the investment bank says more will be needed to be done:
- Trump issued executive orders in the four policy areas that had been expected.
- The extra $400 unemployment payment is likely to last only a month, however.
- The payroll tax deferment would last through year-end, but consumers might be hesitant to spend extra income without a change in tax law.
- That said, both policies could put pressure on Congress to agree to a broader fiscal package. We continue to expect a package worth around $1.5 trillion to become law in August.
- The new executive orders create two deadlines around the end of the month, which could provide a new incentive for Congress to act.