Economic Report: Goldman Sachs raises a red flag over U.S. government spending

U.S. fiscal policy is headed for “uncharted territory.”

That’s how a team of economists at Goldman Sachs, led by Jan Hatzius, have described the government’s current spending and tax plans, as they also warned that the growth kick for the economy from those strategies will eventually fade.

“Congress has voted twice in the last two months to substantially expand the budget deficit despite an already elevated debt level and an economy that shows no need for additional fiscal stimulus,” said the Goldman economists.

Tax cuts signed into law by U.S. President Donald Trump in December will add $1.5 trillion to the deficit over a 10-year period.

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