Fed member points to risks from high US deficit

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July 1, 2017
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File Photo: The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York, April 17, 2013. REUTERS/Keith Bedford/File Photo

Fed member Eric Rosengren warns of the consequences of what he sees as a high US budget deficit.

This could make it harder for the government to fight future recessions with the help of tax and spending policies, said the president of the Fed-offshoot of Boston on Friday according to speech text. “Big deficits now can make it difficult to act in the future.”

US President Donald Trump wants to accelerate the economy faster with, among other things, a comprehensive tax reform and a $ 1.5 trillion plan for the modernization of dilapidated roads. Trump expects additional billion-dollar investments and millions of new jobs. However, many economists fear that this will further increase the budget deficit because the state will forego revenue.

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