June 13, 2017 / 12:41 PM / 5 months ago

S&P economist sees modest U.S. tax cut coming

JERUSALEM (Reuters) - The U.S. chief economist for Standard & Poor’s Global Ratings said on Tuesday that Republicans in Congress were likely to push through a modest tax cut ahead of midterm elections next year.

“We do think that the Republicans will come up with a modest tax cut, similar to what we saw under the second Bush administration,” Beth Ann Bovino told a capital markets conference in Tel Aviv.

Bovino also said she expects the U.S. Federal Reserve to raise interest rates 25 basis points on Wednesday. A quarter percentage point rise would be the second nudge upwards this year following a similar move in March.

She also said she expects “stress tests could be softened a bit” for banks, in line with a U.S. Treasury Department plan unveiled on Monday to reduce restrictions that big banks face in their trading operations and ease their annual stress tests.

Reporting by Ari Rabinovitch, Editing by Tova Cohen

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