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

›       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