The Fed: Fed officials warn Trump that fiscal policy must be smart [MarketWatch]
Churchill Capital Corp V Class A (CCV)
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Source: MarketWatch
Fed officials warn Trump that fiscal policy must be smart Without mentioning President-elect Donald Trump by name, Federal Reserve officials on Monday warned that the incoming administration’s fiscal policy must be intelligently designed to spur the economy while maintaining a rainy-day fund to help the economy withstand another downturn. “Smart” government spending and tax reform could help the economy grow, said Chicago Fed President Charles Evans in a speech to the Executives Club of Chicago, according to Reuters. Earlier, New York Fed President William Dudley had said fiscal policy should be aimed at cushioning the next downturn even though the economy is “in reasonably good shape” at the moment and downside risks have been reduced by the prospect of stimulative fiscal policy by the new Congress. “It is ... important that the U.S. retains sufficient fiscal capacity so that fiscal policy can support the economy when the next cyclical downturn does occur,” he said in a speech to a b
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