This is almost certainly going to cause the U.S. budget deficit to widen, especially if Trump's optimistic assumptions about faster economic growth do not materialize, Lachman said.
"All of this could be damaging for both the U.S. and the global economies, since it is bound to force the Fed to raise interest rates at a faster rate in order to contain inflation. That in turn is likely to lead to further dollar strength, which will damage the U.S. trade position," he said.
"There can be no doubt that the U.S. economy could benefit from increased infrastructure spending. However, for such spending to be effective it needs to be properly financed with increased tax revenues," Lachman said.
But other experts do not believe Trump's rebuilding plan will have the desired impact.
Barry Bosworth, an economist at the Brookings Institution, told Xinhua that there is no fiscal space for a large stimulus program, adding that he believes the time for fiscal policy has passed.
U.S. media has been hard on Trump on a number of issues, but there are some positive signs, such as a stock market uptick on investor hopes that Trump will cut burdensome regulation that hampered the economy under former President Back Obama.
Diane Swonk, a veteran economist who is now independent, said that stock market investors have high hopes for the U.S. economy, and are encouraged not only by Trump's infrastructure promises, but also have hopes for cutting bureaucratic red tape and cutting taxes.
【国际英语资讯:News Analysis: Trumps infrastructure plan expected to boost U.S. jobs, but with downsides】相关文章:
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