Not exact matches
Proposals for fiscal stimulus via tax cuts, government spending and regulatory reform have
led to expectations of stronger economic growth,
higher inflation and
higher interest rates.
In addition,
to the extent
higher realized inflation
leads to higher inflation
expectations — and in turn,
higher interest rates — financial stocks, another big value sector, also benefit.
When global
interest rates and inflation levels are
high there may be an argument for doing something like that as that could reduce inflationary
expectations and
lead to lower
interest rates.