国际英语资讯:Yearender: U.S. economy could slow down in 2019 amid risks: economists_时事

国际英语资讯:Yearender: U.S. economy could slow down in 2019 amid risks: economists

The Fed has raised the key short-term rate four times in 2018 and indicated two more hikes in 2019. It generally increased rates to keep growth in check and prevent annual inflation from rising much above 2 percent.

If the central bank were to miscalculate and raise rates too high or too fast, it could trigger the very downturn that Fed officials have been trying to avoid, experts noted.

Bridgewater, the world's largest hedge fund, warned that the U.S. economy faces a looming deceleration as tighter monetary policy starts to weigh on growth and ratchets up pressure on financial markets.

"We are at a potential inflection point where the economy is moving from hot to mediocre," Bob Prince, co-chief investment officer at Bridgewater, said in a note.

"As long as the Fed continues to raise rates, the grim reality of an overhanging recession risk will be there and the prudent trade will be away from risk assets," said Chris Low, chief economist at FTN Financial.

Over the past year, the Fed's rate hikes have tightened global financial conditions and brought spillover effects for emerging markets, some of which have faced strong pressure in capital outflows and currency devaluations.

BofA Merrill Lynch forecast global monetary policy to become less friendly in 2019. "A divided government means that additional fiscal stimulus in the U.S. seems unlikely. Europe is largely frozen in place by its budget rules, and Japan appears ready to implement yet another ill-timed consumption tax hike," said its researchers.