Weekly Economic Briefings - Us Weekly Economic Briefing
President Trump announced a plan to implement 25% tariffs on steel imports and 10% tariffs on aluminium imports. The major concern isn't the direct impact, but rather the risk of escalating trade tensions sparking a trade war. Jerome Powell was quite candid during his first public remarks since being installed as the new Fed Chair. He is fairly bullish on the outlook for the US economy and wants to avoid the US economy "overheating". He sees inflation gradually firming towards 2%, supportive of our call for four rate hikes in 2018. Economic momentum looks to be holding steady around 2.5% at the start of the year. Looking ahead, the oncoming fiscal boost will underpin faster GDP growth, firmer inflation and wage growth, and wider fiscal & trade deficits.