American economic surge will probably speed down in 2019

American economic surge will probably speed down in 2019

Compared to last year, the American economy is going to surge more slowly this year. That’s what Richmond Federal Reserve President Thomas Barkin told on Friday. The statesman added that he’s concerned about such economic risks as trade policy as well as financial market volatility.

The statesman foresaw surge would resume in 2019, although at a somewhat slower tempo. That’s what the statesman revealed in a prepared statement for a bankers luncheon in Baltimore.

The statesman, who doesn’t have a vote on monetary policy in 2019, although takes part in the US major financial institution’s debates, told that the American economy was coming off a firm year, with unemployment sticking with a 49-year minimum and inflation on target.

Barkin told that as America enters new year, he’s overwhelmed with concerns. For instance, some of his worries have to do with environment, powered by politics or trade. Other concerns turn out to be market driven due to the fact that volatility has gone up and the yield curve has shrunk.

A deceleration in productivity surge actually drops a hint that economic surge will most probably average 1.9% over the long run, which appears to be far slower than now, the statesman pointed out.

As a matter of fact, the American economy speeded down in the third quarter, although the tempo appeared to be firm enough to keep surge on track to hit the current presidential administration's 3% objective this year. However, early in the fourth quarter, momentum happens to have moderated further.

Meanwhile, on Friday, Fed Chair Jerome Powell tried to soothe market fears that America’s major financial institution was neglecting signs of an economic deceleration, telling that he was aware of the risks and would be flexible and patient in policy decisions in 2019.

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Market updates on August 15

The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.

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