Commodity traders await Biden's new $3 trillion stimulus plan – What’s next? [Video]
|The biggest feature of the market this week will be President Joe Biden's huge $3 trillion green energy and infrastructure plan.
With the ink on the $1.9 trillion stimulus package barely dry, this week sees President Biden push ahead with his $3 trillion “Build Back Better” green energy and infrastructure plan.
The Democrats got around Biden’s $1.9 trillion stimulus plan by using budget reconciliation processes, but the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source.
According to comments from Treasury Secretary Janet Yellen, “the next stimulus bill will have to be paid for through higher tax rates”. This will include an increase on the corporate tax rate from 21% to 28%, as well as significant hike on the individual tax rate for high earners.
Once the $3 trillion green energy and infrastructure bill makes its way into the economy, it’s the industrial metals that will inevitably benefit the greatest from the recovery trade. It's little wonder why traders have nicknamed Silver, Copper and the Platinum Group Metals (PGMs) – the "trillion dollar trio".
Other key events that traders will be watching closely this week include; ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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