Two leading Republican senators are reportedly asking the Trump admin to pass a USD 200bln tax cut without congressional approval, Washington Post reports citing a draft; GOP seeks improving its economic approval rating ahead of the mid-term elections

• Two senators incl. Ted Cruz and Tim Scott.
• Aims to reduce some of the taxes paid on capital gains.

The push for a substantial tax cut without congressional backing indicates a strategic maneuver by Republican senators to bolster economic sentiment ahead of the midterm elections. If successful, this could create volatility in currency and equity markets, particularly if the market perceives a significant shift in fiscal policy. Watch for potential implications on growth forecasts and the attraction of U.S. assets versus international alternatives.