OctaFX | OctaFX Forex Broker
Open trading account
Back

US: Tax cuts to stimulate growth – ABN Amro

Following the passage of the USD 8.3bn package (0.04% of GDP) of practical measures to deal with the coronavirus spread, the focus for Congress has quickly shifted to economic rescue measures to help cushion the blow to incomes from reduced activity, strategists at ABN Amro brief.

Key quotes

“The White House’s opening gambit is a payroll tax cut and an expansion of paid sick leave to help ‘gig economy’ and other hourly wage earners who may have to self-quarantine.” 

“Despite the crisis, political considerations will surely play a role in shaping the final package, with president Trump likely to focus on growth stimulus measures (tax cuts), and Democrats focused on relief measures for those who will be hardest hit.” 

“It is possible that some more targeted measures might be implemented through executive orders, bypassing Congress, although such measures would not be on a sufficient scale to be stimulatory.”

“More classical stimulus measures (such as boosts to infrastructure spending) are likely to be left for a future fiscal package, when activity begins recovering again.”

 

GBP/JPY moves back above 136.00 mark, closer to session tops ahead of UK budget

The GBP/JPY cross quickly reversed an early European session fall and is currently placed near the top end of its daily trading range, around the 136.
Read more Previous

Italy's Conte: Government to set aside 25 billion euros to help economy

The Italian government has set aside a total of 25 billion euros to help the economy in the face of the coronavirus outbreak, said Italian Prime Minis
Read more Next
Start livechat