Trump Cancels Pay Raise for Federal Workers, Citing 'Serious Economic Conditions'

http://fortune.com/2018/08/30/trump-cancels-pay-raise-federal-workers-citing-serious-economic-conditions/?utm_source=facebook.com&utm_medium=social&utm_campaign=social-share-article&utm_content=20181202&fbclid=IwAR26Z9cFLky49B34ntDNZ9V3SrxLYnSXEC-gXH4455Yx_FEqWsy9_prRYqs

By Kevin Kelleher August 30, 2018

President Donald Trump said he’s canceling pay raises for most federal workers that were to take effect in January, citing “serious economic conditions” and the strain that the raises would place on the federal budget.

The move would undo a planned raise for most federal workers, including a 2.1% across-the-board increase as well as raises that account for higher costs of living in cities like San Francisco, New York, and Washington, D.C. The pay raises were intended to help federal salaries keep pace with inflation. Consumer prices have risen 2.9% in the 12 months through June.

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In December, Trump signed a tax reform bill that is forecast to expand the U.S. deficit by about $1.5 trillion over 10 years. The president has often touted the strength of the U.S. economy on Twitter. In June, he boasted of presiding over what he called the “Best Economy & Jobs EVER.” On Wednesday, the Commerce Department revised the U.S. GDP growth rate slightly upward to 4.2% from the previous estimate of 4.1%.