Most of the tax cut windfall will boost buybacks and dividends, not workers' pockets, survey predicts

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Forecasters are more optimistic now about the effects of tax cuts on economic growth, they but don't see workers pocketing much of the windfall.

Respondents to the CNBC Fed Survey believe that tax cuts will add 63 basis points to GDP this year, up about 20 basis points from their December estimates.

This could reflect last-minute changes to the bill that pulled forward some of the benefits. But it also could result from corporate announcements in the wake of the tax cuts for increased capital spending and either higher worker wages or one-time bonuses to employees.

"Markets may be understating the impact of the tax cut. We believe that there is the potential for consumers to respond more positively to this tax cut than polls suggest," Drew T. Matus, chief market strategist for MetLife Investment Management, wrote in response to the survey.

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