The current optimism in the US economic and business environment is partly related to confidence in the handling of the coronavirus, but is also largely due to the fact that the government led by President Joe Biden launched Provident initiatives much faster than expected. That’s what Nomura said in a report on Wednesday.
Many voters who voted for the 78-year-old Biden mainly wanted his predecessor Donald Trump, and did not have high expectations of the new president. But even though Trump invariably ridiculed his rival as Sleepy Joe, the new president continues to be extremely active in the first months of his presidency, with bold steps at home, abroad and in economic policy.
“The markets and other countries can keep the announcements accurate,” says Nomura’s chief economist Richard Koo.
This contrasts sharply with President Barack Obama, Trump’s predecessor, who was welcomed by many as a promise of change, but ultimately achieved little. In the 1960s, much was expected of John F. Kennedy, but his less charismatic successor Lyndon Johnson took the big steps in civil rights.
“It seems that a Democratic Party that wants to reform is more likely to succeed with a leader that is not so quickly seen as progressive, also because this calls for less resistance among conservatives who want to block reform,” writes Nomura.
The bank sees Biden continue at this fast pace, as the Conservatives give his government the space to do so. “The rest of the world has to get used to the fact that the New American president is not ‘Sleepy Joe’ but ‘Speedy Joe’, ” concludes Koo.