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Macroeconomy <br />Overview <br />Consumer spending has propped up overall economy, a factor likely <br />bolstered by the tax cut. However, disposable income is rising more slowly <br />than spending, causing the savings rate to drop. In the near term, lower tax <br />bills and repatriation of business profits (which can translate to <br />consumption) will provide short-term stimulus. <br />For businesses, the tax plan delivers not only lower rates, but ability to <br />immediately deduct investment spending from tax payments for the next <br />five years. Higher profitability will also provide more resources for <br />companies to invest, although rising wage costs could partially offset. <br />Tension around inflation fears and higher federal deficits (which will tend to <br />increase interest rates) set against tax cuts and strong current economic <br />growth. Fed is moving toward tightening (thought to be 3 times this year). <br />7 <br /> <br />