Jan Hatzius Sees Tax Cut on Personal and Corporate Side

The transcript discusses the potential impact of expected tax cuts on GDP, highlighting that while a fiscal package may increase the deficit, its effect on growth is likely modest. Market optimism post-election was driven by tax reform expectations, but has since diminished. The discussion contrasts micro and macro level expectations in the equity market, and considers whether tax reforms will be deficit neutral or increase the deficit. The forecast anticipates a modest boost to growth, contingent on the specifics of the tax cuts.

What is the expected impact of the proposed tax cuts on GDP growth according to the transcript?

• 2.25% increase

• 1% increase

• No change

• 3% increase

How did the high-tax stocks in the S&P 500 perform immediately after the election?

• They remained stable

• They declined significantly

• They outperformed the broader index

• They underperformed the broader index

What is the current sentiment in the equity market regarding the passage of the tax bill?

• Complete pessimism

• Diminishing optimism

• Moderate optimism

• High optimism

What is a key consideration when evaluating the economic impact of a tax reform?

• The number of pages in the tax bill

• Whether it is deficit-neutral

• The political party proposing the bill

• The color of the tax bill

What is the expected boost to growth from the tax reforms in 2018 and 2019?

• One percentage point

• No boost

• Half a percentage point

• A quarter percentage point