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New York City Tax Revenue Forecast to Decline on Fed Rate Hikes

May 24, 2022, 8:12 PM

New York City’s tax revenue will likely decline amid an anticipated economic slowdown due to the Federal Reserve’s projected rate hikes later this year, the city’s Independent Budget Office said Tuesday.

George Sweeting, the budget office’s acting director, told members of the City Council Committee on Finance that the agency has lowered its annual March tax revenue forecasts for the next three fiscal years due to plans by the Fed to continue tightening monetary policy by shrinking its balance sheet and raising interest rates.

“The Fed now faces the difficult task of tamping down inflation without triggering a ...