The New York Federal Reserve said on Friday it raised its outlook for U.S. economic growth in the second quarter, citing positive surprises from industrial production and capacity utilization data in April which helped offset last month’s drop in home construction.
In view of realized and expected labor market conditions and inflation, the FOMC decided to maintain the target range for the federal funds rate at 3/4 to 1%. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2% inflation.
President Donald Trump's tax plan, due to be unveiled on Wednesday and proposing to sharply cut rates for businesses and on overseas corporate profits returned to the United States, was likely to be treated by Congress as just an opening gambit.
U.S. President Donald Trump will release a tax plan on Wednesday proposing some deep rate cuts, mostly for businesses, including a slashed corporate income tax rate and steeply discounted tax rate for overseas corporate profits brought into the United States, officials said.