New US tax bill will ‘stabilise things’ but increase deficit, JPMorgan’s Dimon says.
JPMorgan Chase, Chief Executive Jamie Dimon said on Thursday U.S. President Donald Trump’s massive tax and spending bill could help bring stability but it is not conducive to deficit reduction.
The bill cleared a crucial hurdle on Wednesday, as the U.S. House of Representatives voted roughly along party lines to begin a debate that would lead to a vote on passage on Thursday.
The new bill is estimated to add $3.8 trillion to the U.S. government’s $36.2 trillion in debt over the next decade. Credit rating firm Moody’s last week stripped the U.S. government of its top-tier credit rating over the mounting national debt.
Dimon said efficient budgeting, planning and investing would drive growth and effectively help reduce the deficit.
He said the U.S. Federal Reserve was doing the right thing to wait and see before it decides on monetary policy, Bloomberg News reported.
Earlier this month, the Federal Reserve kept interest rates steady but warned that the risks of higher inflation and unemployment had risen, further clouding the U.S. economic outlook.
Source: Reuters