To ensure an optimal and secure experience, please upgrade to the latest version of your browser.
There has been some slowdown in the U.S. economy as trade uncertainties and economic turmoil in other countries take their toll. While second quarter Gross domestic products (GDP) rose by 2.0%, led by a strong 4.7% increase in personal consumption, most forecasts are looking for slower growth in the current quarter. Both the New York and Atlanta Fed’s current projections see a 1.5% increase for the third quarter.
Job growth remains positive, although the pace of growth has slowed. August nonfarm payrolls increased by 130,000 while the unemployment rate held steady at 3.7%. Average hourly earnings remain solid with a 3.2% increase.
None of the current issues facing consumers and businesses are new. The back and forth trade threats and imposition of actual tariffs have become a daily occurrence. Brexit was voted on over three years ago and the political impairment in the U.S. has not materially changed since the Democrats regained the House in the 2018 election. Unfortunately there does not seem to be anything on the horizon to break this scenario, and in fact, things may get worse as the 2020 Presidential election approaches.
The Fed is on track to lower rates at their upcoming September 18th meeting. Further rates cuts seem likely in the coming months as Fed policymakers attempt to keep the expansion on track. They and other central bankers around the world have warned, however, that monetary policy alone can’t solve or prevent the economic fallout from political decisions that may turn out to be self-defeating.
All Investments involve risk, including loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.
Views expressed are those of the advisor stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change.
BNY Mellon Investment Management is one of the world’s leading investment organizations and one of the top U.S. wealth managers encompassing BNY Mellon’s affiliated investment management firms, wealth management organizations and global distribution companies. BNY Mellon is the corporate brand of the Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries generally.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. BNY Mellon Investment Adviser, Inc., Dreyfus Cash Investment Strategies and BNY Mellon Securities Corporation are companies of BNY Mellon. Dreyfus Cash Investment Strategies is a division on BNY Mellon Investment Adviser, Inc. . © 2019 BNY Mellon Securities Corporation, distributor, 240 Greenwich Street, 9th Floor, New York, NY 10286.