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Friday, June 8, 2018

Bernanke Says US Economy Faces a 'Wile E. Coyote' Moment in 2020 [feedly]

Bernanke Says US Economy Faces a 'Wile E. Coyote' Moment in 2020
https://www.bloomberg.com/news/articles/2018-06-07/bernanke-says-u-s-economy-faces-wile-e-coyote-moment-in-2020

U.S. economic growth could face a challenging slowdown as the Trump Administration's powerful fiscal stimulus fades after two years, according to former Federal Reserve Chairman Ben Bernanke.

Bernanke said the $1.5 trillion in personal and corporate tax cuts and a $300 billion increase in federal spending signed by President Donald Trump "makes the Fed's job more difficult all around" because it's coming at a time of very low U.S. unemployment.

"What you are getting is a stimulus at the very wrong moment," Bernanke said Thursday during a policy discussion at the American Enterprise Institute, a Washington think tank. "The economy is already at full employment."

The stimulus "is going to hit the economy in a big way this year and next year, and then in 2020 Wile E. Coyote is going to go off the cliff," Bernanke said, referring to the hapless character in the Road Runner cartoon series.

Ben Bernanke

Photographer: Andrew Harrer/Bloomberg

Sorry, Mr. President, But Best Economy Was Eisenhower's (1)

The timing of Bernanke's possible slowdown would line up badly for Trump, who has called the current economy the best ever and faces reelection in late-2020.



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