What impact on financial markets of the growth slowdown in the United States?
Growth is bound to slow down in 2019 in the United States, due to the return to full employment and the decline in housing investment and in purchases of durable goods and cars. Will the growth slowdown in the United States lead to a further deterioration in financial markets? If financial markets expect this slowdown , the answer is yes ; if they do not expect it, the answer is no. When we look at interest rate forecasts, share prices and earnings forecasts, credit spreads and exchange rates in the United States, we see that the growth slowdown is probably already expected to quite a large extent, and that it is already largely factored in to market prices.