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Trump or Clinton means more spending, says Goldman

A pressman checks uncut sheets of $20 bills at the US Bureau of Engraving in Washington, DC.
Paul J. Richards | AFP | Getty Images

Whether Donald Trump or Hillary Clinton gets elected, government spending is likely to go up in the coming years, according to Goldman Sachs.

"Fiscal policy is coming back into focus in the U.S., driven by campaign proposals that signal a possible post-election fiscal boost, reduced political interest in deficit reduction, and potential economic gains from increased public investment and/or tax reform," Goldman Sachs economist Alec Phillips wrote in a note to clients Friday.

"Our expectation is that fiscal policy will become slightly more expansionary over the next two years, and we are increasing our government spending numbers slightly to account for this."