Click here to read a recent New York Times article entitled “The Era of Fiscal Austerity is Over. Here’s What Big Deficits Mean for the Economy.” It explains the implications of rising government deficits brought on by recent tax cuts and proposed spending hikes.
We agree that a near-term economic boost is likely. However, the longer-term implications, including potential surges in inflation, interest rates, and the national debt, may present challenges to the economy and markets. We will continue to monitor economic and fiscal developments for appropriate response.
