US stocks have been buoyant amid Donald Trump’s promises of fiscal stimulus, lower taxes and lighter regulation. Treasury Secretary Steven Mnuchin has raised the prospect of growth accelerating to more than 3% and both he and Trump have heralded progress on tax reform. But whatever the administration says, “there is ample reason to doubt how much of this will materialise”, says the FT.
The economy hasn’t consistently grown by more than 3% since the 1990s, when the workforce was expanding much faster and productivity was on the rise. Productivity has been lacklustre in recent years [...]