This week, President Biden will unveil details of his $1.8 trillion ‘American Families Plan’.
The proposal will represent the second part of Biden’s ‘Build Back Better’ agenda – following on from the $2.3 trillion Green Energy and Infrastructure spending plan released earlier this month.
Combined, the estimated $4 trillion in new spending measures is expected to break records as the biggest and boldest government overhaul of the economy ever in U.S history.
Biden’s proposal will be partially funded by doubling the capital gains tax for wealthy individuals to 43.4%. Higher U.S taxes combined with Biden’s huge spending plans, have started to raise concerns of stagflation – a period of high inflation combined with a decline in GDP.
Elsewhere, other key events that traders will be watching closely this week include; the Federal Reserve’s monetary policy meeting, which concludes on Wednesday and will be followed by a press briefing with Federal Chair Jerome Powell. U.S Q1 GDP data and the Fed’s preferred inflation measure – PCE data.
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