empty
 
 

2017.05.2522:16:00UTC+00Fed’s Williams Expects Limited Impact from Trump’s Fiscal Policies

San Francisco Federal Reserve President John Williams said that upon analyzing the impact of the Trump administration's fiscal policies on the economy, he concluded that he saw limited short-term gains and little effect for the longer term.

The Fed official said that over the next several months, the fiscal policy will not have much impact on monetary policy. He noted that with U.S. jobless rate currently standing at 4.4 percent and job creation almost twofold of what is needed to provide jobs for those venturing into the workforce, economy is on the verge being 'somewhat hot'.

He recommended that the best strategy to sustain the economy's momentum is to temper the economy slightly by increasing rates at a measured pace.

However, given that inflation continues to fall below the U.S. central bank's two-percent target and as further softened lately, Williams said that there is no strong need to do more tightening in monetary policy this year than the two rate hikes penciled in by policymakers.

Williams said that while the Fed is still on its set course, there is bigger uncertainty surrounding the fiscal policy. He expressed his hope that more light would be shed on some fiscal or federal policies. He said that the fiscal stimulus proposed by U.S. President Donald Trump could by contrast weigh on growth, such as the tax cuts being pushed by the administration.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback