Blowing Up The Deficit

  • There are good reasons to assume that Trump’s tax cuts aren’t likely to increase economic growth by all that much.
  • But they are likely to blow up the budget deficit and run into a more active Fed.
  • The combination of loose fiscal policy and tightening monetary policy will lead to higher rates and capital inflows, a higher dollar and increased trade deficit.
  • As a result, risks in the world economy will increase.

Blowing Up The Deficit | Seeking Alpha