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Neel Kashkari: Tax reform will not change the investment growth
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Loading..."The best option for the impact of the tax reform on the US economy is to increase investment and thus productivity," said Neel Kashkari, Fed President of Minneapolis.
Whether this will happen is another matter. "If we think soberly about the economic environment, the price of access to loan capital is lower than ever, so I think a little saved tax will lead to higher profits in the first year, but not to a drastic increase in the investments that everyone expects. "
On the other hand, the Fed is expected to raise interest rates three or more times this year, and this further increases the cost of ongoing loans to companies. Inflation will also help balance the tax savings and costs of companies. At first glance, these are just two of the economic indicators in the country, but they will prove decisive for the country's economy.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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