The Trump Administration released the initial budget proposal. The document is not nearly complete, so making specific economic presumptions about the Administration’s concept of the budget is premature. Additionally, no Administration’s budget survives going through Congress intact. While there is much for people to cheer and jeer about, it is too soon to know for certain what will happen. The bond market was not particularly impressed, as evidenced by the 10-year bond yield rise for the day. The bottom line for us is that IF the Congress pares back on the Administration’s planned spending reductions, and IF the Administration can get the spending increases it wants passed, and IF the Trump/Ryan healthcare plan passes without too many increases in cost, then the government may be able to hold the line on debt spending or at least not increase the pace at which the national debt is piling up. It is impossible to be definitive at this time with so many unknowns. For now, there is no reason to change our outlook for the next three years.