In its recent global economic outlook, AllianceBernstein said the result of the election represents one of the “catalysts” for growth in the US economy.
“The Republican Party regained majority control of the Senate for the first time since 2006, and added to its majority count in the House of Representatives,” a statement from AllianceBernstein said.
“The party’s broad legislative agenda is pro-growth, including the removal of a 40-year ban on oil exports and the reform of corporate taxes,” AllianceBernstein said.
“Any success on these and other issues could bolster the US growth climate relative to that of other countries, and thus could further increase the appeal of the US dollar.”
AllianceBernstein also pointed out that the US Federal Reserve has “finally become convinced” that the economic growth cycle is “powerful enough” on its own, and has ended the third phase of its quantitative easing program.
“We think the decision was correct, if not a little late. Labour markets continue to show steady, if not substantial, improvement,” AllianceBernstein said.
“Through October, payroll job growth has totalled 2.3 million so far in 2014, and it’s on track to record the largest gains since 1999.
“This signalled that policymakers see the need to raise official interest rates in mid-2015, as the Fed has telegraphed in prior meetings,” the firm said.
