zerohedge.com / by Tyler Durden / Mar 1, 2017
While many Wall Street traders expecting Trump to unveil details of his economic plan went to bed empty handed last night, that was not enough to halt the market rally with the narrative shifting to Trump’s “measured”, “presidential” tone in which he offered an olive branch to both Democrats and Republicans in Congress while promising to make concessions and providing another round of grand visions for the US. Trump urged Americans to abandon conflict and help him remake the fabric of the country, a moment he hopes will turn the page on his administration’s chaotic beginning and bring clarity to his policy agenda. He offered few new proposals and made no suggestions on how he would pay for his plans, including a replacement of Obamacare, a tax overhaul including cuts for the middle class, $1 trillion in infrastructure investment and a large increase in defense spending.
“The market has been looking for reassurance that Trump intends to follow through on his campaign promises for fiscal spending, tax cuts and deregulation,” said James Woods, global investment analyst at Rivkin in Sydney. “He mentioned these policies but did not provide any actual details or time lines, which is what investors are looking for.”
For markets, the speech – either positive or negative – was overshadowed by comments from a handful of Federal Reserve policymakers, who suggested a March rate hike is live, contrary to market expectations. As a result, have tumbled, and global stocks surged following yesterday’s barrage of hawkish Fed speakers, especially Bill Dudley, who in the span of an hour managed to reprice March rate hike odds from just over 50% to 80%, meaning a March rate hike is now in play.