by Felice Maranz
(Bloomberg) — The main positive takeaway from a meeting with President Donald Trump’s former economic adviser Gary Cohn was that government stimulus to stem the effects of the Covid-19 crisis may be “infinite,” according to Wells Fargo analyst Mike Mayo.
In the short term, there’s potential for “wave after wave of support for the economy and unemployed workers; the desire to do so should remain so long as there is a quarantine,” Mayo wrote in a note. Moreover, he added that “the return of consumer spending in the U.S. should not be underestimated.”
The discussions with Cohn, who was also a top Goldman Sachs Group Inc. executive, reinforced Mayo’s view that the largest banks are better-positioned for customer benefits from government programs, reallocating resources and leveraging scale from technology, he said.