IMF Not Optimistic About Trump Tax Reform

The International Monetary Fund isn’t buying what President Trump is selling on tax reform.

The IMF released economic forecasts on Tuesday that assume Trump will not deliver an overhaul of the U.S. tax system this year or next.

The group said in its latest Global Economic Outlook that it expects U.S. policies to remain unchanged because of “significant policy uncertainty.” In April, the IMF’s forecast had assumed a stimulus boost driven by “then-anticipated tax cuts.”

The U.S. economy is now predicted to grow by 2.2% in 2017 and 2.3% in 2018. That’s slightly faster than the IMF expected in July, but slower than its April forecast of 2.3% growth this year and 2.5% in 2018.

Trump has promised growth of 3% in his first term, a rate the IMF has previously described as being “extremely optimistic.”

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza