The IMF is on the wires saying:
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Russian economy is slowing sharply; recent developments suggest growth may be even lower than 1.5% projected in April.
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There is consensus that U.S. tax and spending bill would add to fiscal deficit, runs counter to reducing federal debt.
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Examining details of legislation on U.S. economy; will address in update to economic forecast in July.
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Tariff rates after July 9 will be assessed as part of late July World Economic Outlook update.
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Global trade environment is shifting significantly but countries can do a lot to build their own resilience.
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U.S. needs to reduce its fiscal deficits to put debt-to-GDP ratio on decisive downward path; needs to reach consensus on how best to do that
The Trump administration is sure the negative from the tax/spending bill does not take into consideration the growth prospects from the stimulative measures. They see growth more toward 3%, a huge pickup in tariff revenue as well which will go toward reducing the deficit. Time will tell.
This article was written by Greg Michalowski at www.forexlive.com.
