According to results of the Wall Street Journal’s (the WSJ) survey, most of experts consider the trade dispute with China to be the worst threat to the US economy in 2019. Moreover, some analysts anticipate the Federal Reserve to lower the funds rate starting from 2020. Although, many of them do not take into account the fact that this situation also brings risk of a slowdown in China’s economy as well.
However, not all of 60 respondents of the WSJ spoke out. Almost half of economists – 47.3% – believe that the US-China trade conflict is the key obstacle to the growth of the American economy. Other 20% of experts pointed out the lack of stability in financial markets, while 12.7% more said the problem was in the lowering business investments. Interestingly, only four analysts agreed with Donald Trump’s opinion that the further hike of the Fed’s interest rate was the most dangerous thing for the US economy.
According to Rajeev Dhawan, an economics professor at Georgia State University, all these risks are interlaced and lead to a slowdown in business investment.
