BMO's Gallo Sees Yellen Worried About Market Expectations

The video discusses the uncertainty surrounding Trump's economic plan and its impact on market expectations, particularly regarding rate hikes by the Fed. It explores how fiscal policy changes could affect productivity and investment, with potential positive outcomes for the economy. The discussion also covers economic growth prospects, the likelihood of rate hikes, and the impact of fiscal changes on the dollar. Finally, it examines the implications of tax reform on SMEs and the broader economy, emphasizing the need for regulatory relief to stimulate growth.

What is one of the main concerns regarding Trump's economic plan?

• The uncertainty in fiscal policy changes

• The increase in unemployment rates

• The impact on global trade agreements

• The rise in inflation rates

How might changes in fiscal policy affect US companies?

• By increasing their operational costs

• By reducing their tax liabilities

• By limiting their access to foreign markets

• By affecting their willingness to invest

What is a potential positive outcome of reshoring US production?

• Decreased domestic production

• Improved capacity utilization

• Higher unemployment rates

• Increased import tariffs

What is a significant challenge faced by SMEs according to the discussion?

• Limited access to international markets

• Lack of skilled labor

• Over-regulation and high taxation

• High corporate tax rates

Why is tax reform important for SMEs?

• To reduce the burden of over-regulation

• To increase their export potential

• To enhance their technological capabilities

• To improve their access to capital markets