Economics
Fed Resists Upgrading Growth Outlook After Tax Cuts
- 2018 forecast is brighter, but Fed still at odds with Trump
- Stimulus-induced overheating may prod Fed to hike faster
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Federal Reserve officials are showing surprise at just how much the recently-enacted tax cuts are boosting the U.S. economy. But they’re still not impressed enough to lift estimates for long-term growth, a stance that puts them at odds with the White House.
Minutes from the Jan. 30-31 meeting of the Federal Open Market Committee, released this week, showed “a number” of policy makers had already upgraded their month-old outlooks for growth in 2018, citing an impact from tax changes “somewhat larger in the near term than previously thought.”