The Fed's President, Harker says it's still a 2 percent growth economy until we see some change on the fiscal side

            Harker believes that the U.S will remain stuck in a growth economy at around 2 percent, which has been slow for some time, until lawmakers come up with a tax plan to boost the economy. A positive change in the GDP growth rate can occur if there are changes in taxes and government spending. Harker states he needs more details from the GOP tax overhaul to see if the GDP growth rate will increase. In the tax reform proposal, the Republicans are trying to slash corporate taxes, reduce the tax bracket for individuals and cut taxes for the middle class with the hope that if more income goes back to the working-class family they will buy more consumer goods and invest more money back into the economy. President Donald Trump says that this plan will bring at least a 3 percent growth rate to the economy. Harker believes that they should enact a rate hike later this year and see how inflation dynamics play out.

            Critics of the tax reform believe that the tax reform focuses too much on providing financial brakes for the wealthiest taxpayers and not enough relief for the rest of the population. This could mean that even though they are trying to give some income back to the working family it wouldn’t be enough to see a huge raise in consumption. One factor is that people might want to save more and consume less because they are unsure of the future economic growth. Less spending could mean less money will flow into the economy and the hope for goods production and business expansion will not occur. There would not be an increase in jobs either, which could affect government revenues and government spending. Low money supply and government spending could adversely affect the national saving and overall impact the world interest rate. 

https://www.cnbc.com/2017/10/05/feds-harker-says-its-still-a-2-percent-growth-economy-until-we-see-some-change-on-the-fiscal-side.html