Key Facts About Tariffs, Interest Rates, And Economic Strength
Tariffs, interest rates, and the economy's strength are triggering fear and market volatility. Here are the facts.
Fears of a trade war with China are all over financial cable TV news and even The Wall Street Journal headlines are sounding an alarm, implying it could become a major problem. But the facts indicate such fear is overdone.
In an October 8th column on this topic, Bob Davis in the WSJ quoted from a study by JP Morgan concluding that tariffs would reduce U.S. output growth by just one-tenth of 1% in 2018 and three-tenths of 1% in 2019. Assuming the worst fears about a trade war with China would be realized, resulting in a $125 billion tariff on $500 billion of imports on Chinese goods, the impact on the $20 trillion U.S. gross domestic product was miniscule.
- U.S. Leading Indicators, Retail Sales, And Atlanta Fed Forecast Signal Strength
- S&P 500 Closes Near Record High Amid Growing Ebullience
- An Early Indication The Economy Is Stronger Than Expected
- A Spectacular Quarter For U.S. Stocks Just Ended
- Real Economy Strengthens, Yield Curve Inverts And Mueller Report Drops
- Despite Crises, Economic Fundamentals Are Strong
- How Misperceptions Spread And Cause Confusion On Money Matters
- Real Spending Power Grew Twice The Rate Of The Last Expansion
- Global Growth Forecast Slows, But U.S. Outlook Remains Stable
- How Long Does It Take To Be A Long-Term Investor?
- Five Observations About The CBO's New Long-Term Debt Forecast
- Fed Apology, Strong Job Growth Bolster Stocks
- Despite Grim Headlines, Economic Growth Is Intact
- Despite December Turbulence, Economy And Business Optimism Were Strong
- Latest Forecasts Show Economy Is Doing Okay
- A Poignant Moment In Financial History Sparks Stocks