GOLDMAN SACHS: The US Treasury is going to have to borrow more than we expected

It remains to be seen whether the election of Donald Trump will “make America great again,” but it will likely require the US Treasury to borrow more.

That’s according to a team of Goldman Sach’s strategists led by Jan Hatzius.

The bank said in a note out January 5 that it had increased its projections for net marketable borrowing by about $250 billion by fiscal year 2019.

The new borrowing forecast aligns with Goldman’s revised budget deficit forecast.

They expect the deficit to increase to $650 billion in 2017. By 2020, the deficit should balloon to a whopping $1.05 trillion.

Goldman said the revisions takes into consideration Trump’s policy proposals.

“As a result of the November election, policymakers will now need to tackle an additional challenge: financing a likely increase in borrowing due to corporate and personal income tax reform,” they said.

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