I would expect if there were less fiscal drag
, and I hope there will be less going forward, that the economy's growth rate is going to tick up," Yellen said on November 14 as she addressed senators considering her candidacy to replace Ben S.
The EU region's equities could be poised for an intermediate breakout if fiscal drag
continues to dissipate and growth rates accelerate.
Within this total, taxes on income have risen by 2 per cent of GDP as a consequence of a range of tax measures as well as the effects of fiscal drag
However, the delays usually encountered in enacting such legislation together with the subsequent lags before much of the effects were felt in the economy implied continued fiscal drag
during the quarters immediately ahead; moreover, the propensity for financial markets to raise interest rates in anticipation of fiscal policy stimulus might also damp spending for some period.
We expect capital markets revenue trends to remain volatile over coming quarters, with global market risks persisting in the face of significant macro headwinds, growing concerns over fiscal drag
in the U.
The United States will lead this acceleration, aided by diminishing fiscal drag
, accommodative monetary policy and stronger household balance sheets.
Waning Fiscal Drag
and Easing Policy Concerns Expected to Boost Economic Growth this Year
In a macro sense, accelerating growth in China and the US is bullish for Asian equities, though fiscal drag
in Washington, the Politburo's crackdown on property speculation and Italy/Cyprus event risk on European growth all have the potential to cash dark (if fleeting) clouds on the sunshine scenario.
Any sharp deterioration in the unemployment picture, potentially linked to fiscal drag
and the forthcoming debate over deficit reduction, could accelerate the turn in asset quality performance and hinder profitability for card issuers next year, although a dramatic change is not anticipated given reduced consumer leverage levels and tighter underwriting criteria.
An improving economy, receding fiscal drag
and an accommodative monetary policy should support further gains in stocks though gains will most likely be nowhere close to last year's.
This fiscal drag
or failure to update thresholds in line with inflation means overtime more and more families will have to pay the 40 percent tax.
5% of gross domestic product (GDP), which is in addition to the previous fiscal drag
of roughly 1.