The U.S. economy keeps pushing on, but risks are surfacing on the trade and political fronts. National job growth remains steady, wages continue to rise and inflation is finally seeing sustained upward pressure. The upbeat signals are taking consideration at the Federal Reserve, where it is expected that three or four rate hikes will occur between now and the end of the year. Despite the upbeat economic landscape and expected Federal Reserve tightening, headlines revolving around U.S. trade with China and the Eurozone economies along with political tensions in the Eurozone cloud the outlook. The stock market is moderately up year to date but has been moving sideways over the past few weeks as the effect of corporate tax cuts wanes and uncertainty brews over trade and politics. As the year and economy move forward, Wall Street’s reactions toward business investment and performance in response to higher uncertainty must be closely monitored.
Source : CBRE Global Investors