Eugene Steuerle: Multi-Trillion Dollar Fiscal and Monetary Gambles
Dr. Eugene (Gene) Steuerle is an Institute fellow and the Richard B. Fisher chair at the Urban Institute and a member of the Committee for a Responsible Federal Budget. He recently wrote a piece for the Tax Policy Center, an excerpt of which is below:
Under pressure from President Trump and worried about a worldwide economic slowdown, the Federal Reserve recently cut short-term interest rates. By continuing to push rates down, the Fed may be doubling down on a $25 trillion gamble with future costs yet to be covered.
At the same time, the Trump Administration reportedly is considering tax cuts—that would add the deficit—to boost the economy in the short term. It too may be making another giant bet, with interest and debt repayments to be made by future taxpayers.
Read the entire piece here.
"My Views" are works published by members or staff of the Committee for a Responsible Federal Budget, but they do not necessarily reflect the views of all members or staff of the Committee.