November 2017 Economic Recap
Republican Senators narrowly passed their own version of tax reform a few weeks after the House. The Senate plan maintained the 20% corporate tax rate, though the cut would not go into effect until 2019, and allows companies to repatriate profits at a 14.5% rate. On the individual side, the bill lowers existing marginal tax rates but has a “sunset” provision after five years to keep the overall package from adding to the deficit by more than $1.5 trillion. The bill will now need to be reconciled with the House version before it can make its way to the President’s desk. GOP leadership is aiming to have it signed by Christmas.
Janet Yellen announced that she will be stepping down from the Federal Reserve Board upon the affirmation of Jerome Powell as the new Chairman of the Board. Powell is expected to face a relatively simple nomination process, which means that Yellen could potentially leave before the end of her current term in February. Ms. Yellen’s departure marks the biggest loss yet for the Fed, which is undergoing a huge overhaul in leadership personnel. Since her announcement, President Trump has nominated Carnegie Mellon economics professor Marvin Goodfriend to the Board.
For a deeper consideration of the economic data released during November, please follow the links below: