Key Facts About Tariffs, Interest Rates, And Economic Strength
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Published Friday, December 7, 2018 at: 7:00 AM EST
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.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
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