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David Page, Senior Economist at AXA Investment Managers (AXA IM), discusses the initial market reaction to the tax reform plan announced by the US Administration yesterday.
Key points
- Tax reforms announced as "most significant" since 1986.
- Proposals include corporate tax rate to 15%; lower household tax rates; and a dollar repatriation scheme.
- But beyond headlines, there is little accompanying detail and no apparent plan to pass these proposals through Congress.
- We still expect some stimulus to emerge for 2018, but see increasing risks that this is delayed and/or reduced. This is a downside risk to our 2018 GDP forecast of 2.2%.
Yesterday afternoon US Treasury Secretary Mnuchin announced the...
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