Goldman Warns On Fiscal Outlook: ‘Not Good’

Investing.com – President Trump says he will propose additional tax cuts later this year, but one Wall Street firm says the previous round has already damaged the nation’s fiscal condition.
In a note to clients, Goldman Sachs (NYSE:) says the fiscal outlook “is not good,” with deficits expected to soar in the coming years.
The firm says the nation’s growing debt burden will slow economic growth, raise interest rates and likely hamper the government’s ability to provide fiscal stimulus during the next economic downtown.
Goldman forecasts the deficit will jump from $825 billion, the equivalent of 4.1% of the nation’s economic output, to $1.25 trillion in 2021, or 5.5% of gross domestic product. By 2028, the deficit will hit $2.05 trillion, or 7.0% of GDP.
The President’s $1.5 trillion tax cut package of 2017 permanently slashed corporate rates but reduced personal ones on only a short-term basis.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.