11. United States -- Economic Slowdown?
- Author:
- Oxford Analytica
- Publication Date:
- 07-1999
- Content Type:
- Policy Brief
- Institution:
- Oxford Analytica
- Abstract:
- In recent weeks, economic data has produced conflicting signals about the strength of domestic demand within the US economy. A majority within the Federal Open Market Committee (FOMC) believes that growth will decelerate and that only a small tightening of monetary policy will be necessary in the short term. However, the Federal Reserve has consistently underestimated domestic demand, and there are signs that the economy is still buoyant. Moreover, with improving economic prospects in Europe and Asia, the external forces encouraging lower US interest rates are likely to be reversed. The combination of these factors could put pressure on the Fed to tighten further.
- Topic:
- Economics
- Political Geography:
- United States, Europe, and Asia