October 2017Newsletter is now available
Economic growth continues to be moderate. The consensus forecast for real GDP (Gross Domestic Product) growth from economists is 2.20% for 2017 and 2.30% for 2018. The impact on GDP growth from hurricanes Harvey and Irma is expected to be temporary and should not alter the direction of the domestic economy. Core inflation is still trending below the Federal Reserve’s (Fed) 2.0% target. Dr. David Kelly, Chief Global Strategist, J.P. Morgan Asset Management, expects inflation to edge up through 2018. He bases this on a weaker dollar (leading to more expensive imports), higher oil prices and tightening labor and housing markets.