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The KUIK Morning Market Report for Monday, February 19: |
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Markets are closed in honor of Presidents Day. |
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Index |
Direction |
Change |
Units |
Index |
Time |
Change |
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Dow Jones Industrial Average |
Unchanged |
points |
7:14 AM |
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S&P500 |
Unchanged |
percent |
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Nasdaq Composite |
Unchanged |
percent |
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30 Year Treasury |
Unchanged |
Basis Points |
Annual Yield |
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A team of economists at Goldman Sachs, led by Jan Hatzius, says that the US is headed for "uncharted territory" with the government’s current spending and tax plans. They believe that the growth kick for the economy from those strategies will eventually fade. Tax cuts signed into law by President Trump in December will add $1.5 trillion to the deficit over a 10-year period. They expect debt to reach 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. But this time, the opposite has occurred, which will leave revenues low for a few years and push spending to its “highest point in decades.” Fiscal expansion should lift growth by around 0.7% in 2018 and 0.6% in 2019, but then “will likely come to an end after that” because control of Congress will probably change from Republicans to Democrates after this year’s midterms, and it will be tougher to keep expanding that deficit. |
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Sign up for a Social Security and Retirement Analysis at brcapitalinc.com/kuik. Serving the West Side first, I am Bill Roller for 1360 KUIK. |
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www.marketwatch.com/story/goldman-sachs-raises-a-red-flag-over-us-government-spending-2018-02-19 |
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For today’s Morning Market Report click to listen-> |
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