Was It All a Bad Dream?
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U.S. Economic & Interest rate outlook
We entered the year wondering if the economic tides had turned. Risk appetite fell and volatility spiked amid a strong negative market reaction to the Federal Reserve’s rate increase in December. But markets caught their breath in January: Equity values recovered much of their losses, and economic data, though delayed by the government shutdown, has remained strong. One year has passed since volatility re-emerged in February 2018. Investors have now been thoroughly reminded that markets can move both up and down. Amid this context, we anticipate a year of continued but slower economic growth, and a patient Fed unlikely to undertake many rate actions.
