Moody's: DC Gridlock "May Persist Indefinitely"

After the election of President Donald Trump, the US Federal Reserve has kept an eye on a  potential fiscal stimulus package  from the Trump administration with a wary eye. A significant injection of fiscal stimulus that soaked up supply of raw commodities and created excess demand in the labor pool could be a recipe for inflation. However, the scene has now changed, Moody’s Chief Economist John Lonski observes. The lack of cooperation between the White House and Congress may derail a  fiscal stimulus package – and in turn, this should impact the dot plot for future rate hikes, Lonski asserts….