With the stock market shaking about wildly as 2018 came to a close, many Americans have been led to believe that the explosion of economic growth in the Trump era may soon come crashing to a cataclysmic end.
Federal Reserve Chairman Jerome Powell disagrees, and made that clear during his conversation with Economic Club president David M. Rubenstein last Thursday.
Powell, who is one of the chief financial policymakers in Washington, made an appearance at the Economic Club last week to discuss all things finance. The conversation touched on projections for the future, the volatility of the markets, and the fiscal activity in other countries.
The Fed chair said he did not see any reason to expect a recession in 2019, adding he expects the American economy to remain strong through the end of the year. The American economy is expected to grow by 2.3 percent this year.
Despite this, Powell said a number of recent developments are reasonable causes for concern. According to the Washington Post, the ongoing government shutdown (which is still in effect at the time of writing) is costing the American economy an approximate $1.5 billion every week. However, the paper concedes that this doesn’t amount to a whole lot when you consider that the American economy is worth about $20 trillion.
Powell is also reportedly worried about economic growth in other countries, suggesting there could be a negative effect for the United States.
You can watch the entire conversation in the video below.
Regards,
Ethan Warrick
Editor
Wealth Authority
