For the Post-1980 era, tax cuts lead to higher cash flow news and higher discount rates. The discount rate news tends to dominate such that tax cuts are associated with lower equity returns. This result is flipped for the Pre-1980 era. Our results are confirmed across multiple measures of...
Nov. 61.25%The Fed lowered rates to fight sluggish growth The GDP was 2.8% in 2003. Unemployment was 5.7%, and inflation was 2.3%. DateFed Funds RateEvent June 251.00%JGTRRA tax cuts enacted to spur growth Target Federal Funds Rate for 2003 ...
By February 2024, the markets expects the Fed will have hiked rates 2-3 times and that the Fed funds rate will be near 0.875%. Meanwhile, in March 2021, the Fed thought its policy rate by the end of 2023 would have reflected no hikes, and that the Fed funds rate would still ...
How the Federal Reserve will adjust interest rates in 2017 is far from clear, and it depends heavily on the success of President-elect Donald Trump's stimulus package.
Trump's agenda of lower corporate tax rates, deregulation and policies that favor domestic growth are believed to boost the U.S. economy and benefit risk assets. The large-cap benchmark is up 24.3% this year. — Yun Li Thu, Nov 7 20248:39 AM EST ...
“It’s possible that if President Trump starts hammering the Fed that rates are too high, markets might start revising the expectations about future rates,” Bianchi said, “and they might put some pressure on the Fed on actually delivering on these lower rates.” For now, Powell has be...
Trump was a frequent critic of Powell and the Fed during his first term, which ran from 2017-21, and is in favor of low interest rates. "Everyone is on the lookout for future rate cuts and whether anything is telegraphed," said Quincy Krosby, chief global strategist at LPL Financial. ...
Boston Fed President Eric Rosengren said Tuesday the central bank won't be easily swayed from a December rate hike. Analysts took Fed officials' comments as a clear indication that the U.S. central bank could raise interest rates next month. ...
The Federal Reserve cut the interest rates at the last meeting to help the job market. Although the Fed delivered a 50-basis-point cut followed by another 25-basis point cut, the employment numbers still look gloomy. The focus now shifts to the next Fed meeting. However, with the bond ma...
For instance, a Trump administration could come with sweeping tariffs, mass deportations of immigrants and more tax cuts. These policies, and others he campaigned on, could significantly alter the economic outlook to the extent that continuing to cut rates may no longer be optimal. For now, “...