A growing number of economists say that U.S. fiscal policy is moving in the right direction but many still consider it an impediment to the economic recovery.
A seminannual survey by the National Association for Business Economics (NABE) released Monday showed 42 percent saying current fiscal policy is “about right,” up from the 37 percent in February and 31 percent a year ago.
{mosads}“While there is no clear consensus on current fiscal policy, the share expressing approval has increased markedly to 42 percent compared to just 31 percent one year ago,” said NABE President Jack Kleinhenz, chief economist at the National Retail Federation.
“Over this same period, the panel’s approval of Federal Reserve policy has edged downward.”
Peter Evans, vice president at the Center for Global Enterprise and chairman of the NABE policy survey committee, said “while there is less concern than in earlier polls about fiscal policy uncertainty, a majority still consider it an impediment to the economic recovery.”
Overall, a majority say that monetary policy is on the right track although the percentage declined to 53 percent from 57 percent in the February. But 39 percent felt that the Federal Reserve’s policy was too stimulative.
The economists said that their major fiscal policy concerns are the lack of a 2015 spending bill and the debt ceiling, which is suspended until mid-March 2015.
Meanwhile, a majority of survey respondents said that inflation won’t be a major concern in the coming years and it should hover around 2 percent for five years.
As Congress continues to debate immigration policy, four out of five respondents in the survey said that immigration reform is in their top 10 policy priorities, with more than a quarter saying that immigration reform is a top-three policy priority.
The survey summarizes the responses of 257 members of the NABE and was taken between July 22 and Aug. 4.