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        Tax relief policy is expected to boost the U.S. economy but its effects will not


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- Most economists surveyed by Reuters said the U.S. economy is expected to grow at its strongest pace in three years by 2018 and be pushed by the largest tax cuts since 1980, but the results of the survey also predict the effect of tax cuts Fear hard lasting.

Information Photo: November 2016, Michigan, United States GM's production line. REUTERS / Joe White
The U.S. $ 1.5 trillion (USD) tax credit bill, signed by President Trump on December 22, did not give much reaction to the market, but it still gives a big boost to the world's biggest economy .

In the meantime, respondents expected the Federal Reserve (FED / Federal Reserve) not to deviate from the existing forward-looking guidelines that raise interest rates three times this year.

The survey was conducted between January 11-19 and over 100 analysts surveyed. On average, gross domestic product (GDP) will grow by 2.6% by 2018, compared with an estimated 2.4% last month. A 2.6% growth will set the largest increase since the 2.9% growth in 2015.

As more than three-quarters of the 76 analysts responding to the question will start to see the timing of the tax cuts when they start to see significant economic growth, most say they will not last long.


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