El-Erian: Trump Rally Needs More Fuel From Policy

The transcript discusses market impatience due to pending policy implementations post-election. It highlights economic headwinds from global factors and structural issues, emphasizing the need for continuous market fuel. Markets are optimistic about deregulation, tax reform, and infrastructure spending, despite trade uncertainties. The Trump rally is noted for its unique market confidence, contrasting with past Federal Reserve reassurances. The potential for policy implementation is seen as higher due to a Republican majority in Congress, which may lead to economic reforms previously stalled.

What are the markets waiting for after the pro-growth policy announcements?

• Detailed design and policy implementation

• A decrease in global economic headwinds

• An increase in stock market valuations

• A reduction in structural headwinds

Why are markets generally optimistic despite uncertainties?

• Because of a decrease in repatriation

• Owing to a lack of infrastructure spending

• Because of deregulation and tax reform

• Due to aggressive trade rhetoric

What is the market's perception of the trade rhetoric compared to the campaign period?

• It has become more aggressive

• It remains unchanged

• It has softened

• It has been completely ignored

What is one reason markets are hopeful about the new policies?

• The Federal Reserve's reassurance

• The newness of the policy announcements

• The longstanding weaknesses of the US economy

• The Republican majority in Congress

What was a major factor holding back economic reforms during the Obama administration?

• Aggressive trade policies

• Strong global economic growth

• High stock market valuations

• Lack of Republican majority in Congress