Economics

No Happy New Year for Central Banks Fretting on 2019 Outlook

  • ECB’s Draghi says balance of risks moving to the downside
  • Pimco says U.S. recession risk is now ‘flashing orange’
European Central Bank President Mario Draghi said risks to the euro-area economy are worsening.Source: Bloomberg
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Central bankers’ concerns about the coming year were on display on Thursday as they warned the global economy could be entering a period of great uncertainty.

The European Central Bank said risks to growth are mounting, even as it halted its flagship stimulus program. Authorities in Switzerland and Norway cited threats with considerable potential for damage, and China’s central bank chief said his economy is facing headwinds.