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Axios Jan 3
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Fed expects tax cuts to boost economy

Fed Chairwoman Janet Yellen. Photo: Pablo Martinez Monsivais / AP

Members of the Federal Reserve agreed last month that the GOP tax bill would help the economy by encouraging spending by businesses and consumers, but the disagreed over how big the boost would be, the AP reports, citing minutes from the Fed's Dec. meeting. The Fed projected economic growth of 2.5% next year, up from 2.1%, but short of the 3% touted by the Trump administration

Why it matters: A key point of the tax debate was how the cuts would boost the economy, or even if an economic boost was needed while unemployment rates are at a 17-year low. Some members of the Fed said they were concerned the economy could start to overheat, leading to higher inflation.