Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The lack of clarity surrounding the U.S.-China trade war is what's really hitting global growth, says ex- Deputy Treasury Secretary Sarah Bloom Raskin.World Economyread more
China's economy has long relied on factors such high levels of investments and an expanding labor force for growth. Those growth drivers are running out of steam.China Economyread more
India could benefit from the fallout in the U.S.-China trade war, experts told CNBC — but much-needed reforms on land and labor could prove to be a challenge for companies...Asia Economyread more
New crash tests show the Tesla Model 3 and the Audi e-tron, are among the safest models out on the road. The results bolster the theory electric vehicles may be better...Autosread more
U.S. consumers and growth in sectors such as technology have offset declines in other American industries, says Tom Finke, chairman and CEO of investment management firm...US Economyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle. While there, he's scheduled to meet with Boeing executives and be briefed...Airlinesread more
Last weekend's attacks on oil facilities — and the spike in crude prices that followed — should show that the world needs to stop relying on oil, says Helen Clark.Energyread more
The photo depicts Canadian leader Justin Trudeau wearing a turban and robe, with dark makeup on his hands, face and neck. Liberal Party spokesman confirms the photo is of...Electionsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
CBS, CNN and other major media companies are starting to pull e-cigarette advertising off their airways, as the death toll from a mysterious vaping-related illness continues...Health and Scienceread more
American workers would get a pay raise if Republicans are able to reduce corporate taxes, argued the chairman of President Donald Trump's Council of Economic Advisers.
Cutting the U.S. corporate rate from 35 percent to 20 percent would provide companies with an incentive to keep their profits and operations in America, which would "increase the demand for workers here and drive up wages," Trump aide Kevin Hassett said Monday on CNBC's "Squawk Alley" after the White House released its first economic analysis of the GOP tax plan.
The new report from Hassett, out Monday morning, projects that reducing the corporate tax rate to 20 percent will result in a windfall for U.S. workers. He predicted average U.S. household income would increase at least $4,000 a year but could rise as much as $9,000 annually.
Last week, Larry Summers, a Treasury secretary under former President Bill Clinton and an ex-Obama economic advisor, called an early look at the analysis flawed. "The idea that this is going to produce a $4,000 increase in wages is, I think, an absurdity," Summers said, arguing that "record highs" in corporate profits show that companies don't need an incentive to increase wages.
In response to Summers, Hassett said, "It's hard to respond to something where he says it's an absurdity, but he doesn't say why. And I can tell you he doesn't say why because he doesn't know why."
Hassett also said that over the last eight years, under former President Barack Obama, there's been a "clear structural break" between corporate profits and wages. Corporate profits have risen more than 10 percent but real wage growth has risen a half a percent a year, he said.
U.S. corporations are paying workers abroad, "instead of here," Hassett said.
Regarding the effective tax rate, Hassett didn't say what it would be under the GOP plan. But he said the cost of capital will drop "by about 11 percent."
The Senate voted last month to approve Hassett as chairman of Trump's economic policy agency. Unlike under Obama, the position is not in the presidential Cabinet.
Before his appointment, Hassett was an economist at the American Enterprise Institute and senior economist at the Federal Reserve. He had also been a consultant to the Treasury Department and an advisor on presidential campaigns, including Republican Mitt Romney's unsuccessful run in 2012.