There are new indications that concerns about the U.S. economy may be justified. Yesterday, the Labor Department said job gains last year and in early 2019 were lower than initially reported — evidence that the boost from President Donald Trump’s tax cuts was weaker than expected — while the Congressional Budget Office said the annual deficit could approach $1 trillion this year. Meanwhile, Trump backpedaled from Tuesday’s suggestion of further tax cuts, saying “we don’t need it.”
What’s to be done? Experts say there are few remaining options to stem a slowdown, noting that the Federal Reserve can’t cut interest rates much more and that political divisions could complicate stimulus efforts.