Trump's tax cuts, spending will worsen government debt

Oslo

THE stimulus promised by US President Donald Trump will be a boon to economic growth and global stock markets, but eventually someone will have to pay for it. Tax cuts and infrastructure spending aren't "a free lunch," Olav Chen, head of allocation and fixed income at Storebrand Asset Management in Oslo, said on Friday.

"It means that the US government is borrowing more money and that government debt will increase. And it must be serviced down the road."