US stimulus package in line with expectations; expect compromises in the bill: Wells Fargo’s Schlossberg

The US stimulus package is in line with what the market was expecting, said Gary Schlossberg, Global Strategist at Wells Fargo Investment, on Friday.

President-elect Joe Biden unveiled a USD 1.9 trillion stimulus package proposal designed to jump-start the economy and speed up the US response to the coronavirus pandemic.

Speaking in an interview with CNBC-TV18, Schlossberg said, “The amount didn’t come as a big surprise, but there may be some concerns...”

“It’s a two-part proposal and USD 1.9 trillion is first of two parts and it is very ambitious and if it is in fact, passed, then we think there is a real question about it being passed in its current form, it can have some compromises. But, if it's passed, it provides added tailwinds; concern about inflation picking up and ultimately interest rates and the market is just becoming a little more guarded for now,” he said.

Schlossberg expects growth recovery in Q2 in the US as the lockdown eases. He said he is cautious towards developed markets, and that emerging markets are more favorable.

For the entire interview, watch video