By Jan Hatzius, a fund manager at Goldman Sachs Following the Republican victory in the mid-term...
By Jan Hatzius, a fund manager at Goldman Sachs Following the Republican victory in the mid-term elections, significant fiscal stimulus has become more likely. This is one reason why we do not expect the FOMC to cut interest rates at the 10 December meeting. But even though the administration is now in a better position to push through additional tax cuts, the amount of stimulus that fiscal policy will provide over the next year remains unclear. This is because the prospect of fiscal stimulus comes with two caveats. First, the form of the tax cuts matters a lot. In our view, the...
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