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...

As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More