Jan Hatzius Sees Tax Cut on Personal and Corporate Side

The transcript discusses the potential impact of expected tax cuts on GDP, highlighting that while a fiscal package may increase the deficit, its effect on growth is likely modest. Market optimism post-election was driven by tax reform expectations, but has since diminished. The discussion contrasts micro and macro level expectations in the equity market, and considers whether tax reforms will be deficit neutral or increase the deficit. The forecast anticipates a modest boost to growth, contingent on the specifics of the tax cuts.

What is the speaker's perspective on the disconnect between micro and macro levels of the equity market?

What are the potential implications of a tax bill that is not deficit neutral?