Why The End of 2019 Could Loom as Scary For the Economy

Federal Reserve Chairman Jerome Powell doesn’t seem too worried about a recession, but one former Federal Reserve Board Adviser does seem a bit worried.

“I don’t see the United States exiting {2019 with strength},” Danielle DiMartino, former Adviser to the President of the Dallas Federal Reserve said. She added, “A year from now I don’t see us having a discussion about a continued expansion.”

“I think by this time next year, we’ll be looking in our rear view mirrors,” she said.

There’s a lot baked into that perspective. Oil prices, housing prices, and even investment grade bond prices have already fallen, DiMartino noted. The Brent Crude Oil index is down 17.6% in the past month. “He [Powell] could have leeway with inflation falling back underneath the Fed’s 2% target, so that he actually has formal cover to pause,” she said. As for housing, it’s not just pricing that’s falling, but also volumes.

More at: Thestreet.com 


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