A Threat To Economic Growth – A CNBC Fed Survey

A survey on the recent threat to economic growth due to the tariffs announced by President Trump was published. The survey mentions the economic predictions for the year 2018 and 2019. There was a steady growth in the economy of over 3 percent in the year 2018. It is predicted that the economic growth would drop in the year 2019. Economists state that the current growth economy is temporary and they consider the trade policies suggested by Trump would be a significant threat to the economy.

There is a significant threat to the U.S economy due to the trade war and monetary policies. The CNBC Fed survey predicts good times for U.S economy but the concerns mentioned above should be noted as it would be a serious threat to the growth of the economy.

Inflation rates are low and so are the unemployment rate. The outcome of the treasury experienced a rise of nearly 3.5 percent. There were several respondents for the survey who offered both negative and positive statements on the economic growth of the country. Majority of the respondents of the survey which include economists, financial analyst, etc. predicts that the current increase in the economy is temporary. Economists also consider the trade policies as the biggest threat to the economy.

The Federal Reserve policy would play a key role and affect the economy of the country. The rise in interest rates would be a significant risk to the economy. The major decisions taken by the Government are the cause for the threat.

It is said that there is a potential for the economy to improve in the upcoming years.

News On The Third Quarter Economic Growth Of U.S

The U.S witnessed a drastic increase in its third quarter which is the quickest in the past three years. There was an expansion in the annual rate of the gross domestic product which boosted the investment of the Government. This was the first fastest growth in the economy of U.S ever since the third quarter of the year 2014. There was a growth of three percent in the economy after three years. The economy of the country grew at the rate of 2.5 percent without including the inventory investments. The output also expanded at the same pace.

This quick growth in the economy influenced the Federal Reserve to increase its interest rates. The borrowing cost of the central bank was increased twice the amount. Fed Chair Janet said that there would be a growth in the economy across various broad sectors. She also expected that the economy would continue to grow in the coming years. The statement offered by Fed Chair caused the US Treasuries prices to fall. The labor market powers the economy of the country. The labor market maintained a steady performance during the Former President Barack Obama’s term.
The efforts of President Donald Trump and Republicans of Congress have boosted the economy of the country. They achieved it by slashing the corporate income tax rates. This also lifted the annual GDP growth of the country. This growth was experienced on a sustained basis.