Federal fiscal policy is entering uncharted territory, according to Goldman Sachs, with Congress voting twice in the past two months to expand the budget deficit despite an already elevated level and an economy that doesn’t need any fiscal stimulus.
The U.S. economy is firing on all cylinders, with virtually full employment and solid corporate earnings growth, and the tax overhaul signed by President Donald Trump expected to provide another boost.
Yet in a research note, Goldman provided commentary on the longer-term sustainability of public debt, adding that, at the moment, the debt is within the range of several other developed-market economies, although at the high end.
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