Question

. President Trump's complaints about Federal reserve policy in 2018 made the news. On DECEMBER 22, 2017 President  Trump signed a bill, the Tax cuts and jobs ACT that substantially reduced federal taxes in 2018.

On November 20, 2018, Bloomberg  reported President Trump signing The president tells reports that the central  bank is a “ problem” and that he would  “ like to see the FED with a lower interest rate” How does this comment  FIT into our model of permanent fiscal expansion?

Answer 1

Trumps expansionary fiscal policy by cutting federal income taxes was seen huge fillip to boost aggregate demand and real GDP and he wanted US Federal reserve to contradict its stamc eof raising interest rates and thus adopt an expansionary monetary policy by reducing rates to boost economy and thus both government and US Fed move in same linear direction towards achieving sustainable high growth in GDP. This leads to permanent fiscal expansion as monetary stimulus combined with tax cuts anf high government spending will revive from stagnant economic growth and thus seamlessly fit into model of expansion.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE