A split Congress and Biden presidency will be 'excellent' for the economy and stock market, Wharton Professor Jeremy Siegel says
- Wharton Professor of Finance
Jeremy Siegeltold CNBC on Wednesday a split Congressand Biden presidency will be 'excellent' for the economy and markets.
- Siegel said that Mitch McConnell will work better with Joe Biden to pass legislation than he did with President Trump.
- "We're definitely going to get a stimulus package. We're going to get an infrastructure package," he said. "Biden is going to go over and talk to Republicans and they're going to do it."
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Wharton Professor of Finance Jeremy Siegel told CNBC on Wednesday a
"I think Biden is going to win this and I think very definitely the Senate is going to stay Republican and truthfully that combination is excellent for the economy and it's excellent for the markets," Siegel said, as the final outcome of the presidential election remained unclear.
The revered professor said a Republican Senate Leader Mitch McConnell would work better with Joe Biden to pass legislation than he did with President Trump. In a divided government scenario, the US may still get a stimulus package, but it may not be as large as it would have been if Democrats took control of the White House and both chambers of Congress, he added.
"We're definitely going to get a stimulus package. We're going to get an infrastructure package," he said. "Biden is going to go over and talk to Republicans and they're going to do it."
Siegel said Biden is a "man to compromise," and will work to pass stimulus legislation. The Republican Senate will also block "any radical tax plan," he said.
CNBC's Carl Quintanilla said that historically markets have done better when there is political gridlock, and Siegel agreed.
"A gridlock doesn't mean nothing will get done," said Siegel.
But not everyone on Wall Street agrees with him. Earlier on Wednesday Guggenheim's chief investment officer said the likelihood of a stimulus being passed declined dramatically once it was clear that a Democratic sweep was no longer the likely election outcome.
At the time of publication, votes were still being counted in many critical states but early results pointed to a Republican Senate and Democratic House.
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