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The economy in 2017. With the Dow nearing 20,000. Rising consumer confidence and Fed rate hikes, we’ll look at what’s shaping up for the new year.
It’s one month to Donald Trump’s Inauguration Day, and the stock market – the Dow – has jumped to within a nose of 20,000. Consumer confidence, up since Election Day – significantly. The Fed, watching growth, has just raised interest rates for only the second time in a decade. What’s ahead for 2017? Analysts are predicting a “sugar high” from Trump tax cuts and fiscal stimulus – infrastructure spending. More rate hikes. And then what? This hour On Point: We’re peering into the economic future under Donald Trump. — Tom Ashbrook
David Beckworth, research fellow in the Program on Monetary Policy at the Mercatus Center of George Mason University. Host of the podcast "Macro Musings," which looks at important macroeconomics issues of the past, present and future. Former international economist for the U.S. Department of Treasury. Author of "Boom and Bust Banking: The Causes and Cures of the Great Recession." (@DavidBeckworth)
From Tom's Reading List
MarketWatch: Opinion: The Fed should let the economy run some more — "We’re down to two jobs reports and two Federal Reserve meetings left this year, and the economic climate is beginning to feel a lot like the end of last year — with a renewed push for higher rates from some members of the Federal Open Market Committee, even as the data continue to show a strengthening labor market with no signs of inflation."
The Hill: Finally free: Federal Reserve raises key rates amid improving growth forecasts — "The Federal Reserve has finally been set free. After years of being shackled to low interest rates, the Fed embarked today on a journey to higher rates."
The New York Times: A Trump Economic Boom? The Fed May Stand in the Way — "Investors in financial markets, and those predicting faster economic growth in 2017, would do well to remember the famous words that William McChesney Martin Jr., the former Federal Reserve chairman, uttered way back in 1955: The Fed’s job is to remove the punch bowl just as the party gets going."
This program aired on December 20, 2016.