Tax Cut Gains Forecast to Fade Away in 2019

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Posted To: MND NewsWire

Fannie Mae is backing down slightly on its economic forecast for the remainder of 2018. The first quarter GDP growth of 2.3 percent was the slowest in a year , down from 2.9 percent a year earlier. The company’s economists, led by vice president and chief economists Doug Duncan, say they expect growth to pick up later in the year but the economic boost from last December’s Tax Cuts and Jobs Act and this February’s Bipartisan Budget Act of 2018, will fade next year and the labor market will tighten more than previously thought. The earlier full-year 2018 forecast remains at 2.7 percent, but the company is lowering its projections for 2019 by two-tenths to 2.3 percent. They see substantial downside risks to their forecast , especially the rising price of oil. Crude prices have risen by about…(read more)

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