US: Growth picking up, despite fiscal policy uncertainty - HSBC

The Research Team at HSBC offer insights into the US economic outlook, in wake of Trump’s fiscal stimulus plans and Fed’s rate hikes prospects.

Key Points:

Rising investment spending should push growth higher; we expect GDP growth of 2.3% for 2017

Timing of healthcare and tax policy changes unclear; stimulative fiscal policy may not have much impact until 2018

We expect a slow pace of Fed tightening, with one 25bp hike in June and another 25bp hike in December