According to the world newspapers The Federal Reserve is being forced to raise rates more rapidly and quickly than they’d anticipated only If President-elect Donald Trump and the GOP lawmakers pursue certain stimulative fiscal policies. During a presentation in London, President of Federal Reserve Bank of St. Louis, James Bullard indicated that the Federal Open Market Committee’s short-term outlook for interest rates is still unchanged as a result of the presidential election.
But as per US newspapers a presentation was accompanied with Bullard’s speech which stated that over the medium-term, only few of the policies that have been discussed by prominent Republicans can actually lead to further domestic investment, faster productivity growth which all leads to a faster growth of real gross domestic product.
A well-planned,targeted fiscal infrastructure package should be designed in such a way that aims at increasing U.S. productivity growth. The increase productivity growth will help you to increase the U.S. real GDP growth in the medium term.
The newly elected President Donald Trump’s team thinks that they will be able to push a complete business tax reform bill through the House in a month’s time.Stephen Moore, a Trump ally and senior fellow at the Heritage Foundation told US newspapers that Donald Trump considers tax reform to be a high priority, particularly because he thinks a recession could be coming up.
Trump’s plans call for, a significantly lower corporate tax rate in the U.S.. The current tax rate is 35 percent which goes down from its current 35 percent to 15 percent. Also, a one-time tax on the repatriation of earnings currently held overseas is outside the reach of the American tax system. But the plan of Trump differs from the one which is already circulating in the House. The plan, which is currently running, lowers the corporate tax rate from 20 percent to 15 percent.
Though till now, Trump and House Republicans have agreed on a number of basic issues, but the details of the plan lawmakers who are currently discussing aren’t what Trump had promised during his bid for the White House. As well all know, every special interest group that is present in Washington, hates the system of tax reform, which makes it much more difficult to take on the swamp.
World newspapers told that Trump thinks that the current tax system of America is the most dumbest tax system in the world. As the Republicans control the Senate and the house, they are expected to get whatever they want. But according to Moore, failure to reach party lines can be a little problematic in the future. He also said that the biggest mistake Obama during his time made was he tried doing all the things with one party support.