Market updates on July 16
Welcome to Tuesday!
Tax cuts will drive American economy, although benefits will be short-lived
The American economy will most probably soar this year at its fastest tempo for three years, powered by the greatest tax overhaul since the 1980s. That’s what most market experts told in a Reuters survey that also revealed that they hoped the boost would be short-lived.
The $1.5 trillion tax package signed by Donald Trump on December 22 didn’t cause a powerful market reaction, although it gave a firm push to the outlook for the world's number one economy.
Simultaneously poll respondents didn’t expect the Fed to drift away from its current guidance of three interest rate lifts in 2018.
The survey of more than 100 market experts during January 11-19 demonstrated that American annual GDP expanded 2.6% in 2018 versus 2.4% forecast the previous month.
More than ¾ of 76 market experts who responded to an extra question told that the forecast benefits from the tax cut initiative would start boosting surge considerably in 2018.
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