Tax Cuts Boost Growth, But Fed's Rate Hikes Dampen Effect

New analysis indicates that recent tax legislation will stimulate economic growth, but the Federal Reserves higher interest rates will partially counteract this effect. The federal deficit is projected to surpass GDP growth. The legislation includes tax breaks like overtime and tipped income exemptions. The Federal Reserves reduced rate cuts due to faster growth and slightly higher inflation will impact the economy. These findings will influence the Federal Reserves December meeting discussions, as they weigh the implications of changed tax policy on their outlook for the coming year.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.