The proposed tax cuts are paid for by bigger budget deficits, a fiscal stimulus that is ill-timed given the business cycle.
But the tax cuts favour companies (which in aggregate are generating bumper profits) or rich individuals (who save more of their income).
That means the ripple effects from the stimulus are likely to be small.
The risk that the Federal Reserve tightens too much is aggravated by a change in the make-up of its rate-setting committee, which will take on a more hawkish tinge from next year.
Indeed, nothing Mr Trump does is likely to have a bigger effect on the economy than his choices to fill Fed vacancies.
But the tightening so far—the Fed raised rates by another quarter of a percentage point this week, to a range of 1.25-1.5%—has been appropriate.
As for financial imbalances, pockets of excessive leverage exist.
But the stockmarket has reached new highs as real interest rates have fallen: yields have dropped across all asset classes, from property in big cities to junk bonds.
Asset prices may be high, but there is a logic to their ascent.
A mature cycle also has pluses.
Investment is one.
A global upswing in fixed capital spending is already in train, led by America but not confined to it.
It is fuelled in part by a drop in uncertainty about the global economy.
Businesses that have been reluctant to make long-term bets when one or other of the engines of the world economy has been sputtering are now more willing to put their money to work.
1.budget deficits 预算赤字
例句:Fiscal policy uses budget deficits or surpluses to promote economic stability and growth.
2.global economy 全球经济
例句:Our trade and our commerce is the engine of our global economy.
3.Asset prices 资产价格
例句:The bubble did not only inflate asset prices, it also inflated pay.
4.As for 至于
例句:As for Laura and me, the colour of our skin has never mattered