Economics
Solid U.S. Job Market May Be Undercutting Trump’s Tax-Cut Case
- Cohn says tax reforms needed to accelerate wage growth
- Experts warn U.S. economy may be on the verge of overheating
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President Donald Trump’s economic team says it won’t be satisfied until American
workers earn more -- and aggressive tax cuts are essential for those fatter paychecks.
But with unemployment at its lowest rate since before the financial crisis, the world’s biggest economy may already be nearing top speed. That means a big fiscal boost resulting from tax changes could stoke inflation to levels that would prompt the Federal Reserve to raise borrowing rates faster than anticipated. If that happens, Trump’s ambitious growth goals could be jeopardized.