US: Economy expected to expand at 3% in 2018 - BNPP

Analysts at BNP Paribas suggest that despite slow start, US economy is expected to expand at a 3% or so in 2018, thanks to tax cuts, booming profits and credit.

Key Quotes

“The current weakening in external trade indexes put the risk on the downside.”

“Inflation is accelerating in the wake of higher oil prices and more evident tensions in the labour market.”

“The Fed will keep on normalizing monetary conditions. We forecast the Fed Funds target rate to reach 2.75% by early 2019.”