Political uncertainty may have cast a cloud over Donald Trump’s ability to loosen fiscal policy, but we still think that the FOMC will raise the fed funds rate another 150 basis points between now and the end of next year. We estimate that this would increase the annual borrowing costs of businesses and households by nearly $150 billion. To the extent that this tips unproductive firms out of business, it would ultimately be beneficial for the economy.
Please login to view this contentLost your password?
Not a client? Click here to request access to notes