Fiscal stimulus has US economy on 'sugar high', market expert says
Stimulus will result in 'strong' GDP numbers, Stifel chief equity strategist Barry Bannister said
Stifel chief equity strategist Barry Bannister argues the market will have to correct itself after it crashes from a stimulus 'sugar high.'
While awaiting second-quarter GDP numbers, Stifel chief equity strategist Barry Bannister suggested that growth will be strong due to a stimulus "sugar high." Although the U.S. economy likely grew at the second-fastest pace since 1983, Bannister said on FOX Business' "Mornings with Maria" Thursday that the sugar high will have to correct itself through Fed adjustments.
BARRY BANNISTER: We're going to have a strong GDP, I mean, you have the environment where you have the market in a rational response to somewhat irrational monetary and fiscal stimulus, the Biden administration has just firmly embraced Bernie-nomics. And the Fed is just providing a firehose of money, which has both inflated assets and mispriced risk.
So, of course, you're going to have a strong GDP. But one of the problems, Dagen, is that handouts are not the basis of sustainable GDP. It's a sugar high.
And when you have wage mandates, you misprice labor and we're going to have some adjustments on that.
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Stifel chief equity strategist Barry Bannister discusses his outlook for the economy.