Institution: After Democratic victory, U.S. fiscal policy may tighten in 2027

November 5th - George Bory, Chief Investment Strategist for Fixed Income at Allspring Global Investments, stated in a research report that after the Democrats win the election, US fiscal policy may shift towards tightening in 2027. There is little possibility of introducing new fiscal stimulus measures, while capital expenditure depreciation policies, tariffs, and defense spending may face stricter scrutiny.

Bory added that the likelihood of raising taxes in the short term is low, but Democrats might begin preparations for the 2028 election. He indicated that the US fiscal deficit could narrow next year, which would benefit bond investors.