There are growing signs that the economy will slow substantially over the next two years, posing a significant problem for President Trump and Republicans who highlighted economic growth heading into the 2018 midterm elections.
Goldman Sachs on Monday issued a report projecting gross domestic product (GDP) growth will slow to 1.8 percent and 1.6 percent in the third and fourth quarters of 2019, respectively, sooner than anticipated and creating a major headwind for GOP candidates the following year.
The bank’s chief economist, Jan Hatzius, wrote in a note to clients that “tighter financial conditions and a fading fiscal stimulus” from the 2017 tax reform and spending packages will be “key drivers of the deceleration.”
View the complete November 20 article by Alexander Bolton on The Hill website here.