Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

'Biden’s efforts to win votes feels unprecedented': Piper Sandler

Published 23/05/2024, 14:36

US President Joe Biden’s efforts to secure votes for the upcoming election “feel unprecedented,” Piper Sandler analysts said in a Wednesday note, with some actions bordering on illegality and likely to be overturned.

The firm stressed the critical nature of the upcoming 2024 election, highlighting the noteworthy risks posed by both leading candidates, Biden and Trump, to financial markets.

Piper’s analysts believe that legislative activity for the remainder of the year would likely be minimal due to a divided government, internal conflicts among House Republicans, and the impending election.

"Biden’s efforts to win votes feel unprecedented (and it’s sometimes illegal and going to be reversed)," the firm wrote.

“The fiscal impulse is roughly neutral, the deficit is down slightly (but is still very high and interest costs are way up), and massive new regulatory costs (also designed to win votes) are an overlooked headwind to the economy,” it added.

Despite a neutral fiscal impulse and a slight reduction in the deficit, interest costs have surged, adding to the economic headwinds.

Piper’s team believes that the 2024 election's implications are more significant than in recent years, with potential changes to trade policies, geopolitical stability, and fiscal sustainability, as well as “massive potential swings related to taxes, regulation, and immigration.”

In its base case, Piper Sandler predicts a close election. While Trump holds leads in the polls, the race remains narrow on a national level and in the make-or-break Midwestern states of Michigan, Pennsylvania, and Wisconsin.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.