The $ 1.5 trillion tax reform initiated by Donald Trump in 2017 boosted the US economy, but the positive effect of low and individual taxes could not last long. This is claimed by an economist - the Nobel laureate.
Over the past year, the US economy has indeed overshadowed many advanced competitors, partly thanks to the higher corporate investment that has come from tax cuts. However, they will affect at least two more years, maximum, says Edmund Phelps, a professor at Columbia University.
"I would be surprised if the high level of investment stays longer, perhaps one to two years, not more". - says Edmund. "At the moment, the economy is in its" boom ", but each one has its own end, and it is impossible to maintain an extremely high economic activity and employment on the labor market." According to him, after the evaporation of the effect of the tax reform, the US economy will be normalized, with more normal levels of unemployment and employment.
The Federal Reserve warned they expect a slower growth rate for the US economy this year compared to 2018.
The Central Bank said the weakening European and Chinese economies stifled US growth.
Source: CNBC
Photo: Pixabay
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.