The Tax Cuts and Jobs Act of 2017 lowered taxes and increased government spending to put more money back into the hands of consumers and businesses. This has already had a positive effect on the economy. But can we expect more of the same through the end of the year and beyond?

Brad McMillan, Commonwealth’s chief investment officer, looks at a number of factors that will affect where we’re headed, including:

• Consumer confidence and retail spending
• Corporate earnings and business investment
• Rising inflation and larger deficits

While additional money in consumers’ wallets has been a boon to the economy—and that should continue in the short term—the long-term outlook may not be so optimistic.