Economics
U.S. Treasury Official Says Economists Lowballing Tax-Cut Impact
- Despite stock volatility, U.S. growth is strong, Malpass says
- Real effects from tax cuts will come from businesses, he says
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Economists are underestimating how rapidly the U.S. economy will grow from tax cuts that are encouraging companies to invest and create jobs, a senior Treasury official said.
“Despite the stock-market volatility, the economy is enjoying a period of relative strength and prosperity in both the United States and in many other countries,” said David Malpass, the Treasury Department’s undersecretary for international affairs, at an event in Washington on Wednesday. “Many forecasting models low-ball the longer-term growth effect of the new tax law by focusing on its fiscal mechanisms rather than the structural change.”