Will the Fed Give the Economy Room to Run?
Taxes

Will the Fed Give the Economy Room to Run?

KEVIN LAMARQUE

While many critics think that the Fed would move quickly to restrain excess inflation that results from any tax cuts, and thereby stifle economic growth, Greg Ip of The Wall Street Journal has his doubts.

The Fed would cheer sustained GDP growth of 3 percent, Ip argues, as long as it’s driven by a larger and more productive workforce, which is the stated goal of the Trump administration. While it would eventually raise interest rates, the return to “equilibrium” levels shouldn’t hurt the economy.

Read his full argument here.

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