Economics
Fear of Fear Itself Is an Economic Risk as Uncertain 2019 Nears
- From Brexit to China, many possible outcomes are up in the air
- If people are worried about growth, they could slow spending
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Merriam-Webster announced this week that “justice” was its word of the year. A betting woman might put her money on “uncertainty” for 2019.
That’s because Brexit negotiations loom large, the U.S. fiscal stimulus may begin fading, in earnest, the extent of Federal Reserve rate hikes is unclear, America’s spat with its major trading partners is unresolved and China’s growth could falter. The yield curve -- which historically signals recessions when short-term interest rates move up above longer-term rates -- is still flirting with such an inversion.