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IMF's Lagarde: Trump's reforms not happening

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Staff Writer | September 21, 2017
IMF chief Christine Lagarde warned Wednesday that the US will fall short of its ambitious economic growth goals unless it can accelerate promised policy changes, including tax reform.
Christine Lagarde
America   Three percent annually
The Trump administration has said it will push U.S. growth to three percent annually - a rate economists say is unrealistic, given the low U.S. unemployment rate, among other factors.

The International Monetary Fund cut its growth forecast for the U.S. economy this year back to 2.1 percent after reforms expected to boost the activity failed to materialize.

Asked on CBS This Morning if the U.S. could reach its growth target, Lagarde said, "We think it is going to be very difficult, yes. Particularly if the reform pace is as slow as it is."

Lagarde noted that "there were very strong market expectations early in the calendar year after the elections that tax reform would take place promptly, that massive investment would be made in infrastructure."

However, she said, "none of that has materialized at all."

The IMF in January raised its U.S. growth estimates on the expectation of fiscal stimulus and tax reform from the Trump administration, but reverted back to the previous calculations which project the economy will expand by 2.1 percent in 2017 and 2018, down from 2.3 percent and 2.5 percent, respectively.


 

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