The political reaction to the tax reform bill that was recently passed has grown more favorable over time. Initially, people appeared skeptical. But now that lower withholding rates are actually showing up in paychecks, the sentiment is turning more positive. Economically, we are seeing the same thing. Consumer confidence is rising again, due at least in part to larger paychecks. That should also translate, over time, to faster growth as both people and businesses are increasingly willing and able to spend. The recent debt ceiling deal should also help economic growth, with hundreds of billions of dollars in additional spending. This kind of fiscal stimulus will certainly help growth accelerate this year.
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