Trump must convert surging US confidence into real growth | Mohamed El-Erian

The exuberant market reaction to his win has not been translated into progress - he must work with Congress to deliver

Financial markets seem convinced that the recent surge in business and consumer confidence in the US economy will soon be reflected in "hard" data, such as GDP growth, business investment, consumption, and wages. But economists and policymakers are not so sure. Whether their doubts are vindicated will matter for both the US and the world economy.

Donald Trump's election as US president has triggered a surge in positive economic sentiment, because he pledged that his administration would aggressively pursue the policy trifecta of deregulation, tax cuts and reform, and infrastructure construction. Republican majorities in both houses of Congress reinforced the positive sentiment, as they signalled Trump would not face the kind of paralysing gridlock that Barack Obama confronted for most of his presidency.

Related: Trump faces formidable institutional obstacles - so what can he do? | Barry Eichengreen