Skip to content
Subscriber Only
Markets
Economics

U.S. Growth Engine Looks Able to Power Past Stock Market's Woes

  • Goldman index shows conditions looser since Fed started hiking
  • Fiscal stimulus ‘kept spreads tight and reduced volatility’
Inside The Stihl Inc. Power Tool Manufacturing Facility Ahead Of Industrial Production Figures
Photographer: Luke Sharrett/Bloomberg

Despite a slump in equities and gains in the dollar, few economists are concerned that broad financial conditions will strangle the second longest U.S. economic expansion on record.

Goldman Sachs Group Inc. has one of the gloomier outlooks and forecasts the the recent decline in equity markets, as well as Federal Reserve interest-rate increases and a stronger greenback, will trim growth by about three-quarters of a percentage point by mid-2019, according to economist Daan Struyven. His outlook assumes stock prices remain steady.