Foreign media reports that the U.S. Senate passed the tax reform bill 51 to 49, which will be the first amendment to the tax law in Congress for 31 years. HaveAnalystSaid that if eventually passed the tax reform, the Fed is expected to raise interest rates next year 4 times.
The Senate passed the tax reform act, made significant progress in tax reform
According to foreign media, the U.S. Senate passed the tax reform bill 51 to 49, which will be the first amendment to the tax law in Congress for 31 years. It is said that only Bob Corker within the Republican Party voted against it.
The bill will reduce the corporate income tax from 35% to 20%, allowing business owners to deduct 20% of their business income.
Mr Trump had hoped earlier that the tax reform bill could be passed as early as November 30 in the Senate as the most significant achievement since his administration and the Republican government took office.
According to the latest estimates, the tax reform tax relief measures may bring about 1.45 trillion U.S. dollars of fiscal deficits for the United States.
The Fed next year or raise interest rates four times
Analysts pointed out that the adoption of tax reform program may speed up the pace of the Federal Reserve to raise interest rates.
In the view of Morgan Asset Management, Bob Michele, the bond market should prepare for the shock from the Fed if the United States Congress tries to pass the tax reform act.
Michele believes that even the most hawkish expectations are not enough. He said if there is no fiscal stimulus to end the federal fundsinterest rateIt looks like between 2% and 2.25%.
According to Bloomberg survey median expected, after this month's expected rate hike, the Fed will raise interest rates next year twice. Federal Reserve policymakers "own forecast" is to raise interest rates next month and then raise interest rates three times next year.
Some analysts believe raising interest rates four times next year may raise interest rates at every press conference after each meeting.
Deutsche Bank economists said the Fed expected to raise interest rates four times next year, compared with the previous forecast of three; still expected the federal fundsinterest rateBy the end of 2019 will reach 3.1% of the high point.
(Original title: Just! Senate passed tax reform bill next year or raise interest rates four times)