Paul Ashworth, chief US economist, Capital Economics
With the Republicans holding the Senate and the House, there is now a greater chance that some, or all, of Trump's fiscal plan will be enacted. But the tax cuts, which are worth around $6 trillion over the next decade, would be mostly unfunded, particularly if Trump also boosted infrastructure and defence spending.
It is hard to believe that the Tea Party fiscal conservatives in Congress would be willing to blow out the budget deficit like that. It would put the Federal debt burden on course to exceed 100% of GDP within a few years.
On trade, we expect Trump to start by labelling China a currency manipulator and to bring a number of perceived disputes to the WTO. Tariffs are possible further down the line, but won't be the first option. He will also insist on renegotiating NAFTA, but it is hard to know what he hopes to achieve. His main criticism is that Mexico (and Canada for that matter) has a VAT, which he has characterised as a one-way de factor tariff. That is economic gobbledygook. TPP and TIPP are dead.
Given the adverse market reaction we have already seen, the Fed's planned December rate hike is now off the table.