WASHINGTON (AP) — The Federal Reserve is set Wednesday to raise interest rates for a third time this year and possibly modify the likely direction of rates in the months ahead.
The big question is whether the strong U.S. economy, which has been fueled this year by tax cuts and increased government spending, could weaken next year, especially if President Donald Trump’s trade fights begin to inflict damage and the benefits of tax cuts start to fade.
If the Fed finds that prospect likely, it might signal Wednesday that it expects to slow its rate increases next year.
The Fed’s key short-term rate now stands in a range of 1.75-2 percent after two quarter-point increases in March and June. A similar rate hike Wednesday would raise that range to a still-low 2-2.25 percent.
Where did you come up with the past 12 months economy have been in any way “fueled by tax cuts” ?
Do you have any evidence of that? They do not even take effect until 2019 Taxes and they mostly go to people who not increasing their spending with the tax cuts.
The folks who fuel the economy are the working class who are constrained in spending by how much money they have. Give them a tax cut and you can see the economy improve.
But these tax cuts are to the rich, who already spend as much as they want. History shows, tax cuts to them go into savings or investments. Neither a huge impact on the GDP.
Please change that sentence unless you have evidence.
You’re talking to the wrong end of the horse, it’s an AP feed.