Welcome to Thoughts on the Market.

I'm Michael Zezas, Head of U.S. Public Policy Research and Municipal Strategy for Morgan

Stanley.

And I'm Matt Hornbach, Global Head of Macros Strategy.

And on this edition of the podcast, we'll be talking about legislative debates in DC

over fiscal stimulus and infrastructure and how fixed income markets may react to potential

outcomes.

It's Thursday, March 11th at 11 a.m. in New York.

We want to talk about what we think is next in Washington, DC, the next big legislative

debate, and that's around infrastructure, the Build Back Better Plan.

And why we think this is going to be another round of fiscal expansion like the COVID relief

bill, and ultimately supportive for the economy and risk markets.

But it's important to note that markets' interpretation of this policy could vacillate

between being positive and negative, something that could mean that the bulk of the rise

and interest rates for this year could already be behind us.

So Matt, that's why we wanted to talk to you today.

And start with this question, when it comes to the infrastructure plan, what do you

need to know in order to gauge its impact on markets?

Well, Michael, the first thing I'd like to know is the overall size of the package,

and I'm sure our economists would like to know that as well, because that will help them

gauge the type of demand impulse that the economy will experience over the next five to ten

years.

...