Jim Reid is a solid analyst but I think we can dispense with words like "strategy" in any sentence describing Trump's legislative ambitions. It is apparent that they were never coherent policies with a realistic road map to implementation. They were aspirational fantasies and, as we see now, illusory, founded on the notion that he could merely command tax cuts materialise, bridges sprout to span America's byways and Congress would do his will. Even King Canute knew better than to believe he could order back the sea. Instead we see a man who plays the role of bigoted scold and who regards equivocation such as we saw at Charlottesville as insight. Markets, and the rest of the US for that matter, will have to look elsewhere for direction. Whatever one thinks of Janet Yellen, her replacement, normally a routine undertaking, will be a real cause for concern in markets. Uncertainty and instability are likely to continue and be no more well received.

Labels: moderation: safe