Quickview: The US midterms have, as expected, seen the Democrats take the House with the Republicans holding the Senate. Our investment experts consider the implications for fiscal policy, trade, and the 2020 presidential election.
We still see scope for further interest rate rises from the Fed this year, following yesterday’s 25 basis point hike at the March meeting of the FOMC.
Core inflation looks likely to accelerate further, putting pressure on the Federal Reserve to keep tightening policy.
In the first part of our series of articles assessing the outlook for next year, Keith Wade discusses whether the Goldilocks combination of strong growth and low inflation can continue in 2018.