The U.S. stock market has hit record highs after Donald Trump wins the 2024 election, but will it last?

Unlimited Co-Founder, CEO & CIO Bob Elliott tells Yahoo Finance Live that he expects more accommodative fiscal policy and a greater boost to the U.S. economy once the Trump administration takes office.

While the U.S. economy is already positioned for growth — expanding at a rate of 2-3% with low unemployment — Elliott warns that expansionary fiscal policy could make the economy “too hot.” This may prompt the Federal Reserve to tighten monetary policy more than expected.

“If we have expansionary fiscal policy into a relatively strong economy, that'll run the economy too hot and the Fed will need to be a little tighter than people had expected,” Elliott says to anchors Josh Lipton and Julie Hyman.

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