Our U.S. Economist Weighs In
Darrell Spence is a U.S. economist with 24 years of investment industry experience. In this interview, Darrell discusses his thoughts on the U.S. economy, how long this bull market can last and the latest on tax reform as we head into 2018.
Q: What is your outlook for the U.S. economy?
A: The U.S. economy has been in an expansion for a while now and is probably the furthest along in terms of global economic recoveries, but I think it still has a ways to go. Growth is likely to remain above potential and the unemployment rate is likely to continue to drop. In fact, some of the resource utilization measures that we look at suggest core inflation could hit, if not exceed, the Fed’s unofficial 2% target by the end of 2018. So that is something that we’re watching pretty closely. And I think the Federal Reserve will continue to tighten gradually. I think two to three rate increases in 2018 is probably a reasonable assumption unless, again, growth or inflation really do something different than expected.