BUDGET/TRUMP AS PRESIDENT: “Early optimism that President Donald Trump would be able to revitalize the U.S. economy is fading as Congress struggles to pass major legislation.
Forecasters in The Wall Street Journal’s monthly survey of economists marked down their outlooks for growth, inflation and interest rates this month, a partial reversal of a postelection bump.
‘I think the probability of at least a temporary government shutdown over government funding this year is almost a 50/50 proposition,’ said Scott Anderson, chief economist of Bank of the West. ‘Congress appears more divided and less likely to compromise than ever.’
An agreement has yet to emerge over how to pass a GOP health-care bill to replace President Barack Obama’s signature law. Senate Majority Leader Mitch McConnell postponed the Senate’s usual August recess by two weeks, to give senators more time to hash out agreements on health, government funding and other issues.
This wasn’t the outcome many forecasters had expected after the election. The prospect of Republicans controlling the White House and both chambers of Congress led many to conclude that fiscal policy could provide a swift boost to the growth outlook, if a substantial tax overhaul and Mr. Trump’s proposed infrastructure package were quickly implemented.”
-Josh Zumbrun, “Forecasters Lower Economic Outlook Amid Congressional Gridlock,” The Wall Street Journal online, July 13, 2017 10:00am