I think my colleagues and I mainly see the likely tax package as boosting aggregate demand, but also having some potential to boost aggregate supply.
We continue to think, as you can see from the projections that a gradual path of rate increases remains appropriate, even with almost all participants now factoring in their assessment of the impact of the tax policy.
You know, it is projected that the tax cut package will lead to additions to the national debt and boost, by the end of the horizon, the debt to GDP ratio. And I will say, and this is nothing new, it's something I've been saying for a long time. I am personally concerned about the U.S. debt situation. It's not that the debt to GDP ratio at the moment is extraordinarily or worrisomely high. But it's also not very low. And it's projected as the population continues to age and the baby boomers retire that that ratio will continue to rise in an unsustainable fashion. So the addition to the debt taking what is already a significant problem and making it worse is -- it is of concern to me.
And I think it does suggest that in some future downturn, which could occur, just for whatever reason, the amount of fiscal space that would exist for fiscal policy to play an active role may well be limited.