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        The Fed expects to tighten monetary policy in the future as Trump's stimulus rec


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The Trump administration's tax cuts and government spending may deeply affect the US economy in the next two years. The latest US Federal Reserve (FED/) prediction shows that monetary policy has entered the "restricted" field, and it has been seen for the first time in more than 10 years.
The new round of prediction released by policymakers on Wednesday is the clearest. It means that the short-term growth of large scale fiscal stimulus may be high enough in the future to pay the cost of the brakes on the economy.
Since the 2007-2009 year of the financial crisis, it has been dominated by a very different view. The focus of the fed over the past ten years has been on how much looser is needed to allow the economy to enter a model of full employment and low inflation steadily.
However, in the Federal Reserve's latest forecast, the impact of government tax reform and spending plans seems to weaken the hope of such a soft landing.
The Fed expects fiscal stimulus to boost economic growth for two years, but there is no obvious long-term stimulus to the economy. With the unemployment rate decreasing and inflation rate slightly surpassing the target of the Fed, the Fed increased its interest rate to 3.5% in 2020, 0.5 percentage points higher than the current "neutral" level.


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