Donald Trump’s unexpected election to US presidency has boosted the stock market.
Following Trump’s win, economists expect an economic growth of 2.2 per cent in 2017 and 2.3 per cent in 2018, increasing from 1.5 per cent the past year.
Inflation is also predicted to rise to 2.2 per cent in 2017 and 2.4 per cent in 2018. The Federal Reserve has been struggling to increase inflation above the 2 per cent threshold since the 2008 financial crisis.
Bank of America’s stock has climbed by 17 per cent since Donald Trump won the presidential election.
These changes and estimates are underpinned by the belief that Trump’s administration will push for deregulation and provide market stimulus through infrastructure spending and cuts in tax rates.
The Bank of America has indicated that for every 100 basis points increase, the Bank will earn $5.3 billion in additional net interest income.