The U.S. economy has been sending mixed signals in recent days, but the nation’s top economists say there’s likely more harm than good.
Escalating trade tensions between the U.S. and China, slowing growth around the world and waning fiscal stimulus are all acting as a headwind to growth, according to the 20 leading experts polled for Bankrate’s Second-Quarter Economic Indicator survey. The majority (80 percent) of respondents say that these risks are more heavily tilted toward the downside, while just 10 percent say they’re tilted toward the upside — down from 19 percent in the prior quarter’s survey.
“Monetary policy has overly tightened, and fiscal stimulus will dry up by the end of the year,” says Dan North, chief economist at Euler Hermes North America. “Add in trade fears, decaying housing and manufacturing sectors, global weakness, and geopolitical tensions, the result is definitely more downside risk.”
The U.S. economy has been sending mixed signals in recent days, but the nation’s top economists say there’s likely more harm than good.…continue reading the rest of this post: 40% of top economists expect Fed to cut rates over next year