Keyword Search: Deficit (loose results)
1 Article
Source: Common Domain

Goldman Sachs raises a red flag over U.S. government spending

Tuesday 13:37 GMT

That’s how a team of economists at Goldman Sachs, led by Jan Hatzius, have described the government’s current spending and tax plans, as they also warned that the growth kick for the economy from those strategies will eventually fade.

Goldman economists expect the U.S. debt level to hit 5.2% of gross domestic product by 2019, and keep climbing gradually from there. In the past, a strengthening economy and rising debt burden has prompted Congress to raise taxes and cut spending.

1 Article
Source: Common Domain

Here’s what ‘twin deficits’ means for the dollar and the Fed

Thursday 15:28 GMT

Economist Gavyn Davies, in a weekend column in the Financial Times, said the twin deficits are viewed “by some” as harbingers of a more serious dollar crisis, though he noted that the link between the deficit pair and the direction of the dollar is “extremely tenuous and may actually work in the opposite direction.”

Nonetheless, he said, the twin deficits aren’t good news and could push the Fed towered more aggressive monetary tightening that could bring the economic expansion to a halt.

1 Article
Source: Common Domain

U.S. companies are posting faster sales growth even before Trump tax cuts

Friday 11:47 GMT

It’s understandable to expect a massive tax cut to spur spending, but big U.S. companies were increasing sales at a faster pace even before President Trump got his way on the bill in late December.

CFRA investment strategist Lindsey Bell estimated on Thursday that sales growth of 8.1% during the fourth quarter for the S&P 500 had accelerated from an average growth rate of 5% since “the emergence from the earnings recession of 2015-2016.”

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