Former Fed Chair Doesn’t Forecast Big Impact From Trump Tax Cuts

U.S. President Donald Trump’s tax cuts are likely to give only a meager boost to productivity growth in the United States, former Federal Reserve chief Janet Yellen said on Thursday.

Yellen led the U.S. central bank for four years until February when Trump passed the Democrat over for another term in favor of Republican Jerome Powell.

Yellen took a swipe at Trump’s tax cuts without once mentioning the U.S. president by name during a near hour-long discussion at a conference in Paris hosted by French fund manger Amundi.

Asked about the outlook for productivity growth as a driver of corporate earnings, Yellen said that tax cuts should produce some impact on investment spending and in turn productivity.

via Reuters

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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