Economist insights: US Senate passes new tax bill, acceleration in GDP growth in Switzerland, India and Brazil

Economists' insight: The Fed steals Donald Trump’s thunder

›       The US Senate passed its tax plan on 2 December. Once the versions from the lower and upper houses have been reconciled, the measures should be implemented in early 2018

›       Swiss GDP growth climbed to 1.1% year-on-year in the third quarter, up from 0.6% for the first half of the year, thanks to the increase in net exports

›       In India, real GDP growth bounced back to 6.3% in the third quarter following the slowdown from the first half of the year linked to the reforms. The upturn in economic activity is continuing in Brazil

US focus: Flattening of the yield curve set to continue in 2018 and 2019 (p.4)

›       The flattening of the US yield curve, with long yields rising by less than short rates, which began in 2014, continued over the past few months

›       While we expect the Fed to continue gradually tightening its monetary policy in 2018 and 2019, this trend is not expected to be called into question…

›       …because the upside potential for long yields is limited by the Fed’s persistently high balance sheet, the US Treasury’s management of new bond issues and the anchoring of inflation expectations

Macro Highlights - December 4th 2017 - US tax cuts, Swiss GDP, India and Brazil & US interest rates