Summary: The combination of tax reform, expectations of regulatory relief and healthy household balance sheets is likely to extend the current U.S. economic expansion through 2019, setting a new postwar record, says Ellen Zentner, chief U.S. economist for Morgan Stanley. She projects that the tax bill will provide an extra 0.4% of growth in 2018. That combines with regulatory relief to boost growth, while tax reforms to provide an unexpected boost to credit quality during a mature stage of the cycle.
