14 Enero, 2018
The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York, April 17, 2013.
The Fed is expected to pay about 80.2 billion U.S. dollars to the Treasury in 2017, down from the 91.5 billion dollars in 2016, and falling for a second year in a row, according to preliminary estimates by the Fed. European stocks are a case in point-but the potential for catch-up remains appealing.
"We are approaching a time when a comprehensive reconsideration of the monetary policy framework is likely warranted", Rosengren said. Critics of the tax plan say its estimated $1.5 trillion cost will cause the deficit to skyrocket, though the Trump administration and congressional Republicans insist that economic growth will offset the costs.
The Fed said that its operating expenses for the entire Federal Reserve System totaled $4.1 billion, not including $724 million in currency operations, $740 million in board expenditures and the Consumer Financial Protection Bureau's $573 million annual budget.
For the long term, he warned not only of the costs the tax cuts will impose on the deficit but also damage down to high-end housing by elimination of state and local property tax deductions.
"Keeping the economy on a sustainable path may become more challenging" for the Fed due to the risk of "overheating", he added.
A sharp rise in underlying inflation last month was not enough to convince at least one Federal Reserve policymaker that further interest rate hikes will soon be needed to keep a lid on rising prices. The Fed adopted this framework six years ago and has reaffirmed it each year since.
In a wide-ranging speech to economists and investors, Dudley also dismissed concerns about a so-called flattening yield curve in which shorter-term bond rates rise and longer-term rates rise. "The legislation will increase the nation's longer-term fiscal burden, which is already facing other pressures, such as higher debt service costs and entitlement spending as the baby-boom generation retires".