Mellon Webex Series: Quarterly Economic Outlook January 2020
In this quarterly update on economics and financial markets, Chief Economist and Market Strategist Vincent Reinhart explains that some of the events risks that threatened the outlook, including a worsening of the China-US trade dispute, have diminished. As a result, US economic growth should be sustained into 2020 at about the modest pace of last year as the Federal Reserve (Fed) keeps its currently accommodative stance of policy unchanged. Because trade matters more to our trading partners, the positive news on US policy provides a more significant cyclical boost abroad. Pressures on costs gather momentum given the taut US labor market, pushing inflation above the Fed’s goal of 2 percent and narrowing corporate margins.