A dour view from Greenlight Capital’s David Einhorn in a note to investors:
- From a market perspective, we don’t think it matters very much who wins
- “The economic policies of both parties are remarkably similar.
- Both favour large deficits despite a strong economy.
- We believe this supports our ongoing expectations of higher secular inflation in the coming years
Higher inflation argues that interest rates will remain higher than otherwise. At the margin.
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Nearer term, markets are favouring a September Federal Reserve rate cut:
This article was written by Eamonn Sheridan at www.forexlive.com.
