Get ready for a substantial slowdown in the US economy, investment bank predicts

French investment bank Natixis is urging investors to prepare for the U.S. economy to slow down substantially. There is a limit to the rise in the participation rate and the employment rate and real wages are slowing down. Consequences of this slowdown will include a brief rise in interest rates, a market sell-off and a depreciating dollar. This one French thinks things will drastically decrease  while more mainstream Wall Street banks are not nearly as pessimistic. The Wall Street banks predict a positive 2.5% change in the GDP in the third quarter year over year. Also American optimism about the economy just recently hit an all time high.

The speculation of the French Bank means many things. If real wages go down then people have less buying power and things cost more in the United States. A depreciating dollar means imports costs more so the United States will export more to make up for this difference. Other countries will want to buy our goods if they are cheaper so GDP could go up even with a depreciating dollar. If interest rates rise people won't want to invest in companies and will hold their money. If people are worried about the economy slowing down and hold their money then the economy will slow down. If the market expects negative things they will self fulfill it and the market will go down. So it is good to see that people think the economy is at an all time high. With positive outlook by both big banks and the American people the economy might continue to rise. The remarks by this French Bank mean very little in comparison to the positive outlook of the American people.


www.cnbc.com/2017/10/25/get-ready-for-a-substantial-slowdown-in-the-us-economy-investment-bank-predicts.html