A Pimco official has warned investors that President Donald Trump and Republicans most likely will only be able to pass watered-down tax-reform legislation with little economic-growth benefits.
Pimco’s head of public policy, Libby Cantrill, explained to CNBC that getting reform enacted is very difficult. “At the end of the day, if we see any action on tax it will likely be ‘tax-reform light.’ Some components of tax reform but for all intents and purposes more of a tax cut,” Cantrill said.
“It probably won’t significantly impact economic growth in 2018,” she added.
Treasury Secretary Steve Mnuchin on Monday vowed that the Trump administration is “100 percent committed” to getting it done.
Republican lawmakers have also insisted they will make it a priority, even though they are facing deadlines to increase the debt ceiling and pass a budget in September.
Pimco isn’t alone in becoming pessimistic about the Trump administration.