Fed Reverses Stance Since Great Recession, Says U.S. Economy Needs Less Stimulus

Federal Reserve officials are convinced the U.S. economy no longer needs as many stimulative government tax and spending programs as it has recently.

That’s a huge change, as the Fed has relied on stimulative programs to churn growth since the financial crisis, the Wall Street Journal reports. The change also comes at a critical time, considering President-elect Donald Trump is about to take office and, presumably, push forward the tax cuts and spending increases he proposed on the campaign trail.

Several Fed officials, including Chairwoman Janet Yellen, said stimulus programs are now unnecessary, considering the jobless rate is down to 4.7% — though there remain some critics who believe the Fed's change of heart is purely a political shift and reversal of policy after favoring the Obama administration. [WSJ]

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