The Summary of Economic Projections provided by the Federal Reserve on 21 March,
suggest higher US growth and lower unemployment with little rise in inflation.
This appears to
be the result of the impact of US tax cut legislation. Accelerated depreciation could lift
investment. This might lift productivity. Individual tax cuts might lift labour force participation.
This might also add to output.
The supply side improvements brought about by the tax cut legislation could improve the
outlook for the US economy.
Listen to the full analysis in the podcast or clients can download my report 'What the Fed thinks'.
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