Powell’s Nirvana – What Ends the Unending U.S. Cycle?
(Bloomberg) -- Federal Reserve Chairman Jerome Powell has said there’s “no reason to think that this cycle can’t continue for quite some time, effectively indefinitely.” But with the current U.S. expansion pushing toward its 114th month -- close to the 120-month record of the 1990s -- it’s worth asking what could bring it to an end. Trade wars and market blowups top Bloomberg Economics’ list of possible negative factors. Still, BE expects Powell’s nirvana of low unemployment, moderate inflation and sustained growth to continue for at least another year.
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