JPMorgan Says U.S. Fiscal Boost Not Here Yet But It's On Its Way

Tax cuts and increases in government spending have yet to deliver a significant boost to the U.S. economy, but the lift is still coming, according to JPMorgan Chase & Co. analysts.

Delays in reducing employers’ withholdings from workers at the start of the year may have limited the immediate impact of lower taxes, and since then, people have more disposable income to spend, JPMorgan’s Michael Feroli and Jesse Edgerton wrote Wednesday in a note to clients. “Total taxes withheld from paychecks from February to April 2018 were actually below the level in 2017, despite about 3.5 percent nominal income growth since then,” they said.