Tax cuts to support demand, productivity - Powell

Economy 6/13/2018, 8:53 PM
Tax cuts to support demand, productivity - Powell

United States Federal Reserve Chair Jerome Powell said on Wednesday that he expects the Republican tax reform and spending changes to provide "meaningful support" to demand over the next three years. He added the tax cuts are also set to result in an increase in productivity and investments in the country.

Powell noted that the Federal Open Market Committee (FOMC) also believes the tax reform should get a favorable response from the supply-side, as well, but pointed out the timing and amount are still uncertain.

Responding to a question on when the Fed will decide to stop hiking rates, the central bank chief stated the policymakers will be guided by incoming economic data and are especially keeping an eye on inflation and the labor market.

Breaking the News / NP

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