empty
 
 
06.12.2018 12:01 PM
US economy shows signs of slowing

This image is no longer relevant

According to the report of the Federal Reserve System (FRS) of the USA, presented in the Beige Book, the state of the American economy is not critical, but shows clear signs of a slowdown. This is another negative signal for the markets, experts emphasize.

According to the Fed, the growth of the US economy remains, but is proceeding at a moderate pace. Many analysts believe that the reason for this is an increase in import duties, interest rates and restrictions on the labor market. Experts also note a wage upward trend. However, its preservation may be a negative signal for the markets, experts say. The projected growth in American wages is 3.1% YoY.

A number of experts believe that the American economy has reached its peak, and its growth rates will gradually slow down. In the debt market, experts record numerous alarming signals. Analysts point out that the yield curve has taken an inversional appearance, which is considered the main indicator of the impending recession and the increase in negative trends in the economy.

Experts remind that the inversion in the market of treasuries provoked the recent collapse in the securities market. On Tuesday, December 4, the S & P index fell by 3.24%, the Dow Jones index fell by 3.1%, and the high-tech Nasdaq sank 3.8% immediately. Large-scale dumping of stocks in the US market was provoked by large hedge funds using computer models to track global market trends (CTA), analysts summarize.

Larisa Kolesnikova,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback