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The New Administration's Lean towards Quantitative over Qualitative Sources of Growth Will Leave the Bottom Line Unchanged—at Least for Now

The outcome of US elections has further increased the level of uncertainty about the fate of the global economy, but bottom line growth results do not look very different from what The Conference Board projected before November 8th. Fiscal policy measures such as tax cuts and investment in infrastructure may provide some growth upside to the US economy in the short-term, but their impact will most likely be small. The incoming administration’s ambitious target for job creation will be constrained by a tightening labor market. The major drivers of medium-term trend growth will be difficult to change quickly through policy.

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