Макроэкономическая политика администрации Трампа

Abstract

This article discusses the policy instruments that Federal Reserve System uses in pursuit of the strategic objectives of influencing variables like inflation and output. Trump administration macroeconomic priorities are reflected in the 2020 Economic Report of the President, which calls for stimulating economic growth. This report shows that for many years the primary instrument of U.S. monetary policy was the federal fund rate, which is an interest rate on loans of Federal Reserve deposits between depositary institutions. When this rate fell essentially to zero, the Federal Reserve implemented massive purchases of Treasury securities and mortgage backed securities as an alternative policy instrument with which it hoped to stimulate U.S. economy growth. This situation is highly likely to develop in American economy in 2020. Section 2 reviews the major effects of Trump administration fiscal and budget policy. The first result of this policy is great increase in budget deficit and public debt. Author considers that further growth of federal debt will become a serious obstacle to the policy of “making America great again”. Large scale tax reform of current administration is being discussed in the Section 3 of the article. Author analyses the Cuts and Jobs Act (TCJA) and comes to conclusion that TCJA would raise the target U.S. capital stock reorient U.S. capital away from direct investment abroad in low tax jurisdictions and toward domestic investment, and raise worker compensation and household income through long run capital deepening channel. Monetary and financial problems are being discussed in the article. US role in international financial flows is being analyzed.