Chairperson of Federal Reserve Bank Janet Yellen and colleagues of Central Bank expresses sort of uncertainty on the economic policies of incoming Trump’s party. They are not sure of what type of policies will be pursued by Trump’s Cabinet and how it would affect the domestic as well as foreign economy.
According to minutes of Federal Open Market Committee’s December meeting, the officials of Central bank were comfortable with the economic state they gathered in Washington in the remaining days of 2016. According to them economic activity was expanding at moderate pace and labor market also continued to strengthen in recent months.
But the concerning matter is about the stock and sentiments which have been followed on the day of Donald Trump’s victory day. Once the policy he is likely to implement in the office left fed at the loss. Many participants express caution in evaluating financial implications and development of financial market.
They express the need for caution and in the light of uncertainty about how federal spending; tax regulatory policies might unfold the economic status of the country in near future. Federal chair Yellen on December press conference touched the subjects relating to changes in fiscal and economic policies under Trump.
Trump has promised to cut personal and corporate taxes and trying to put more money directly into customer’s pocket. Like everybody, Yellen too is in dark as which type of fiscal policy will come out. They only expect for some good without any mishaps.