February 23, 2018 / 4:05 PM / in 4 months

Deficits may hurt U.S. response to recessions -Fed official

NEW YORK, Feb 23 (Reuters) - The now “large” U.S. deficits may complicate the government’s ability to curb future recessions with tax and spending policies, so the Federal Reserve must depend less on fiscal policy, a top Fed policymaker said on Friday.

“Large deficits now may make future actions difficult” for the government, Boston Fed President Eric Rosengren said in prepared remarks to a conference of central bankers and economists here. He added it was “difficult to depend on” fiscal policies in the face of a recession “given political pressures and uncertainties.”

Since mid-December the Republican-controlled Congress and U.S. President Donald Trump aggressively cut taxes and boosted spending limits, two fiscal moves that are expected to push the annual budget deficit above $1 trillion next year and expand the $20 trillion national debt. (Reporting by Jonathan Spicer Editing by Chizu Nomiyama)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below