US fiscal stimulus of $750-900 bn will be considered positive: Richard Harris

Wall Street has rallied on the back of abundant liquidity and COVID-19 vaccine optimism. But can the US fiscal stimulus deal propel the markets higher?

Richard Harris, Chief Executive of Port Shelter Investment Management in an interview to CNBC-TV18 said, “The market 3-4 weeks ago was expecting something like USD 2 trillion stimulus package. Now that clearly wasn’t going to come through because Republicans said no and Democrats actually wanted more – more to the tune of USD 2.5 trillion levels. The Republicans were willing to go up to USD 1.8 trillion.”

Harris also believes that there could be a bit of dollar weakness going forward. “We may see a bit of dollar weakness but I see it as being fairly short term. What we are talking about is a very unusual situation where central banks are creating vast amounts of liquidity around the world. So that money has to go somewhere,” he said.