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Fed has been gradually raising interest rates and unwinding its balance sheet from the record $4.5 trillion level, which will put upward pressure on sovereign debt securities and mortgage-backed securities. Yet the impact is expected to be small and well-controlled. Articulated goal of reducing balance sheet will reflect in limited amount of monthly securities roll [...]

Easy financial conditions have been supporting the pickup of global growth since mid-2016. Financial conditions in US have loosed to the easiest levels in mid-2017 since 2014, largely due to tighter credit spreads. The situation won’t be changed in short-term according to National Financial Conditions Index (NFCI), the positive values of which have been historically [...]

The US government enters into bilateral income tax treaties with numerous countries in order to encourage international trade and investment, promote cross-border cooperation, stimulate information exchange and reduce double or excessive taxation. French enterprises in the states may apply reduced rates or be exempted from the requirement to withhold tax at source. Tax rate imposed [...]

Also following 2017 Tax Reform, the cost of qualifying property of no more than $500,000 per piece can be deducted for tax purpose. In addition, additional first-year depreciation deduction is allowed equal to 50% of the adjusted basis of qualified property. Qualifying property is also extended to property already put in service. The ability to [...]

President Trump signed the Tax Cuts and Jobs Act into Law on Dec 22 last year. The tax reform reduced top corporate tax rate from 35% to 21% in 2018. This brings US taxes from the highest in the G20 nations to just below the average in the EU, which will undoubtedly stimulate earnings growth [...]

Output gap estimates the spread between actual economy growth and its potential level. Potential level can be achieved if all resources in the economy are utilized at their long-term sustainable rate. Global Financial Crisis started negative output gap and it was until recently the gap begins to close in most advanced economies, which provides evidence [...]