Jan Hatzius was on CNBC yesterday to discuss his outlook for the economy. The Chief Economist at Goldman Sachs says were should expect below trend growth (sounds familiar):
“We expect about 2% growth over the next few quarters. So slightly below the economy’s potential meaning that the unemployment rate is probably going to go sideways to maybe slightly higher. And we also think that the Fed is probably going to respond with at least some small steps in the direction of additional stimulus, i.e. provide a little more guidance about the size of the balance sheet at next week’s FOMC meeting.”
Hatzius says meaningful downside risk means there is now a 1 in 3 chance that the USA is going back into a recession:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.