There’s certainly been some interesting economic news since the November election; however, some of the positive new is not necessarily as a result of the election.
Interest rate increase
- The Federal Reserve increased the Fed Funds rate in December 2016 due to healthier economic growth prospects.
- Additionally, the brightened economic outlook prompted the Fed to forecast three (3) rate increases in 2017, an increase from the two (2) originally anticipated.
Stock market rally
- Following the election, the stock market rallied to record highs, fueled by the President-elect’s proposed fiscal stimulus plan that includes tax cuts, regulatory changes, and greater infrastructure spending.
- The outlook for Hawaii’s economy remains positive post-election.
- Hawaii’s economy has benefited from strong employment growth, diversified tourism industry, and higher construction spending.