Pre-market: Goldman on how the Fed creates the next recession

Right now, economic data surprises are diminishing. And so the synchronized global growth spurt may be decelerating. Nevertheless, many economists are talking about US growth through 2019 and a 3% unemployment rate. Goldman Sachs chief economist Jan Hatzius is one of them. The fly in the ointment is the Fed and its accelerated rate hike timetable.
The bullish US economic scenario
Now Goldman isn't the only one talking up the US unemployment rate falling to 3%. So are JPMorgan Chase, Deutsche Bank and Moody's Analytics. The danger is overheating, as Moody's Mark Zandi signalled when the latest jobs report came out. He says that the US economy could grow 2.9% this year. But potential growth in his view is only 1.75%.

Nevertheless, continued US growth could mean great things for the labo...


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