Publications

The Wall Street Journal reports that President Trump is considering Larry Kudlow to replace Gary Cohn as director of the National Economic Council. Kudlow, who has voiced opposition to recently-announced tariffs on steel and aluminum, is a veteran of the Reagan administration, and was an early supporter of President Trump’s campaign for the White House. WSJ

According to the Washington Post, Boston Fed President Eric Rosengren says that recently-announced aluminum and steel tariffs will not have a big impact on the U.S. economy and will not trigger a global trade war. Rosengren also said that recent tax cuts will boost economic growth but are unlikely to affect wages. WaPo

The Financial Times reports that St. Louis Fed president James Bullard warned yesterday that the Federal Reserve risks slowing the U.S.’ recovery. Bullard also said that the Fed would not have to raise interest rates very high in order to slow the current expansion and that already-below-target inflation would remain subdued if rates were raised too quickly. FT

Andrew Van Dam of the Washington Post argues that standard statistics such as the trade balance are imperfect measures of bilateral trade. Van Dam contends that the bilateral trade balance exaggerates trade deficits between countries, and that value-added measurements are more accurate measures of a country’s exports. WaPo

The Wall Street Journal reports that President Trump yesterday signed sweeping tariffs on steel and aluminum imports but exempted Canada and Mexico from the duties. The tariffs will take effect in two weeks, though many Congressional Republicans have voiced their opposition to the tariffs and have expressed fears of retaliation from trading partners, especially those in Europe. WSJ

Eric Morath of the Wall Street Journal reports that a new study from the Brookings Institution argues that while automation is not broadly eliminating jobs, it may be keeping incomes lower than they otherwise would be. The study found that automation actually increased total employment in advanced economies over the last five decades, but that productivity-enhancing advances meant that the owners of capital took home a larger share of profits. WSJ

According to the Wall Street Journal, a new report from Harvard economists finds that recent tax cuts would have a net cost of $1.2 trillion to the U.S. Treasury over a decade. The paper also finds that the tax cuts would add a total of about 0.4% to economic growth over ten years, though growth benefits would expand if Congress extends certain expiring tax provisions, such as full expensing of capital investments. WSJ

The Wall Street Journal reports that President Trump’s top economic adviser Gary Cohn will soon resign. Cohn remains opposed to President Trump’s proposed tariffs on steel and aluminum, which many fear will cause a global trade war. WSJ