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Subject

Prospects for the US economy in 2018.

Significance

In 2018, US GDP should continue growing at the 2017 pace of 2.0-2.5%, and 0.2-0.3% higher if Congress can pass a tax cut. Incoming Federal Reserve (Fed) Chair Jerome Powell yesterday gave his first testimony to the Senate Banking Committee, vowing continuity and stability in monetary policy. US economic activity has been expanding for 100 months, the third-longest expansion since 1854 and almost twice the post-Second World War average of 58 months.

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