“After a torrid run, the US has produced some positive news on growth with the ISM manufacturing bouncing back up from two-year lows and construction spending surging higher at the beginning of 2019,” notes James Knightley, Chief International Economist at ING.
Key quotes
“The rather volatile nature of recent US economic data reports fully justifies the Federal Reserve’s “patient” stance towards monetary policy. Our position remains that while the economy does face more headwinds this year, there are reasons for optimism, most notably the strong household fundamentals.”
“If we can also get a positive resolution to the ongoing trade talks, this could remove a considerable amount of uncertainty and give businesses the confidence to put more money to work. While we think the Fed is unlikely to hike rates again, we don’t expect to see any interest rate cuts this year.”
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