Trump calls for $1trn infrastructure investment to 'restart engine' of US economy
Donald Trump on Tuesday night delivered a predictably upbeat first speech to Congress as US President, reiterating several of his bold pledges but without providing much detail the business community was looking for apart from asking for backing for a $1tn (£800bn) infrastructure package.
His tone was optimistic as he exhorted the Capitol to support a "new chapter of American greatness" and declared "the time for small thinking is over".
"To accomplish our goals at home and abroad, we must restart the engine of the American economy - making it easier for companies to do business in the United States, and much harder for companies to leave."
He said his team was "developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone" and also again pledged to provide "massive tax relief" for middle classes.
Following up on his hints the in the run-up to the speech, President Trump confirmed a vague outline of his infrastructure plans, implying a mix of government funding and private support.
"To launch our national rebuilding, I will be asking the Congress to approve legislation that produces a $1trn investment in the infrastructure of the United States -- financed through both public and private capital -- creating millions of new jobs," he said.
The new President also outlined a blueprint for a replacement for a "collapsing" Obamacare that includes ensuring access to coverage for those with pre-existing conditions.
"I am also calling on this Congress to repeal and replace Obamacare, with reforms that expand choice, increase access, lower costs and at the same time provide better health care. The way to make health insurance available to everyone is to lower the cost of health insurance, and that is what we will do."
On immigration he called for a merit-based immigration system, referencing Australia as an example, and continued to trumpet threat posed by "radical Islamic terrorism" as he warned against "reckless" and "uncontrolled entry" of refugees and immigrants from countries with ties to extremist groups.
Quiet reaction
With US markets having closed lower ahead of the address, Asian and European stocks were up but this was not seen as being down to the US president.
"In a nutshell the long awaited Trump address had a familiar ‘America first’ theme throughout and plenty of echoes of his inaugural address. However the disappointment market wise has been the lack of detail," said Jim Reid at Deutsche Bank.
The US dollar did not move much in reaction to the speech.
“In a curiously ironic twist, Donald Trump at his most presidential – and least fiery – lost his ability to move the currency markets," said David Lamb, head of dealing at FEXCO Corporate Payments.
“The President’s invective-free speech to Congress was long on vision but short on detail. Despite the pre-speech promises of big increases in defence spending, the main event disappointed dollarwatchers who had expected more concrete proposals on tax cuts and an overhaul of America's infrastructure."
Lamb said the Greenback has instead been propped up by the increasingly hawkish tone of Federal Reserve speakers, with the next interest rate hike potentially just a few weeks away.
“As the Dollar holds steady, for once the President is playing a supporting role in shaping exchange rate sentiment. But while the medium-term prospects for the Dollar are robust, any rowing back by the Fed could quickly erode the gains it has made.”