News 

Top White House economist rejects ‘trickle down’ criticism, says tax cuts will lead to growth

“Trump has touted the passage of the House tax reform bill as a victory” writes Sarah Westwood for washingtonexaminer.com. In a briefing with reporters, Hassett said “trickle down” economics is the name people give to tax cuts when they don’t favor those cuts.Hassett said the tax reform bill passed by the House this week contains all three of President Trump’s must-have provisions: a 20 percent corporate tax rate, middle class tax cuts, and a simplification of the tax code.He said the White House, which has spent weeks working with Congress…

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News Oil 

Economist Jim O’Neill explains how the dollar will lose its ‘kingpin’ status

“Renowned economist Jim O’Neill said Tuesday that investors “have to believe” the dollar is not going to be the kingpin currency forever” writes Simon Dawson for cnbc.com. The greenback’s status as the world’s most powerful currency has been questioned for decades, but contracts based on the U.S. dollar continue to dominate global markets.Firstly, it’s never going to happen because the dollar is the dollar.But beyond that, moving away from the dollar is a strategic priority for countries like China and Russia.However, in recent months, speculation has intensified that China could…

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GBP News 

Decline in the pound will continue for three key reasons, economist Adam Posen warns

“Sterling is likely to further weaken amid increasing political instability and sluggish Brexit negotiations, according to a leading economist” writes Holly Ellyatt for cnbc.com. “The day-to-day, month-to-month movements (in the pound) will focus on the everyday (Brexit) negotiations,” he said.”But for the British people and the British economy going out more than six months, what’s going to happen is a decline in the pound. Source: cnbc.com Share This:

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News Regulators 

Here’s why investors look too complacent about the Powell Fed

“The New York Fed president is the most powerful policy maker after the chair and vice chair” writes Deputy Markets Editor for marketwatch.com. Shepherdson also predicts that, by the time most new Fed members take their seats, “the data will point the Fed unambiguously toward higher rates. Source: marketwatch.com Share This:

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News Stocks 

Five important reasons why a stampede into stocks may be just getting started

“The previous longest streak was 11 months that ended in February 2004 following a drop of 50%, according to Jeffrey Kleintop, chief global investment strategist at Charles Schwab & Co” writes Markets Reporter for marketwatch.com. However, they were cautiously optimistic that the tax bill will result in some economic stimulus when it eventually passes. Source: marketwatch.com Share This:

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U.S. economy rebounds from Hurricanes Harvey and Irma

“With the upward revision of September payrolls into positive territory, October’s job gain of 261,000 is the 85th straight month of growth.”” reports washingtonpost.com. The U.S. economy added 261,000 jobs in October, meeting expectations that the country had rebounded from damage wrought by Hurricanes Harvey and Irma, and the jobless rate ticked down to 4.1 percent — the lowest level since 2000.”Our economy is moving in the right direction, but there is more work to do,” Acosta said.Health care, which continues to be one of the fastest growing employment sectors, shot up…

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News 

Three kinds of debt are the biggest problems in China, says economist

“Despite concerns about household debt in China, the biggest problems still come from the corporates, state-owned enterprises and local governments, a Barclays economist said Thursday” writes Huileng Tan for cnbc.com. Outgoing PBOC governor Zhou Xiaochuan recently warnedabout the pace of growth in household debt levels. But, Chang said, China’s household debt over GDP at 40 percent was still much lower than average international levels.Particularly, the debt level over GDP remains quite high,” Chang, speaking on the sidelines of the Barclays Asia Forum in Singapore, told CNBC. State-owned companies’, private firms’…

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News Regulators 

Trump seen naming Powell as Fed chair on Thursday

“Powell, a former investment banker and Treasury official, joined the Fed in 2012 without any experience in economics or monetary policy” writes Senior Economics Reporter for marketwatch.com. Stanford University economist John Taylor is seen as another finalist for the position.On the other hand, Taylor would represent a significant shift from Yellen’s policies mainly because he favors a rules-based approach to the conduct of monetary policy. Source: marketwatch.com Share This:

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Business equipment spending steals spotlight in Q3 GDP report

“Business equipment spending jumped at an 8.6% annual rate in the third quarter on top of an 8.8% increase in the second quarter” writes Senior Economics Reporter for marketwatch.com. Business equipment spending not only supports faster top-line growth today, but also lays the groundwork for faster growth down the road, Moody said in an interview.Scott Anderson, chief economist at Bank of the West, said improved business confidence may be playing a role in the acceleration of equipment spending.This added almost a half a percentage point to third-quarter GDP growth.The government…

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News 

EX-OBAMA ECONOMIST: The Trump team’s claim that tax cuts would boost wages is ‘more than a little far-fetched’

“As for the overall bend of the tax plan, Furman confirms what so many other analyses have found: the rich win” writes Pedro Nicolaci Da for businessinsider.com. The Trump administration is pitching its tax cut plan as a boon to the middle class even though a wide range of independent analyses shows the proposals outlined so far would overwhelmingly benefit the wealthiest Americans.This amounts to between 275% and 550% of the $200 billion corporate tax cut’s total cost, says Furman, implying growth benefits to workers that are “more than a…

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