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Amid policy clash over rates, Fed and administration share key points about the outlook
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104.1 KSGF
By Howard SchneiderWASHINGTON, Jan 29 (Reuters) – The wide gulf between the Trump administration and the U.S. Federal Reserve over where interest rates ought to be masks the fact that the two sides have begun to share a consensus about the near-term economic outlook.
The alignment is not perfect, and there is a particularly big gap in attitudes about how to manage risks.
On productivity, administration officials and particularly chief economic adviser Kevin Hassett say a developing surge warrants looser monetary policy, akin to how then Chair Alan Greenspan responded to developments in the 1990s as computer technology spread.
It may be less boisterous a view than Trump’s descriptions of the U.S. as the “hottest” economy in the world.
“Corporate labor market news does not feel great at the moment,” Dutta said, noting a recent slide in consumer views of the job market.