Speed kills - the US economy must slow down

Brett Gillespie | Ellerston Capital | 12 November 2018

The US economy needs to slow down - the unemployment rate cannot continue to fall forever. The key question is what causes the US economy to slow. The most obvious answer is rate hikes and, indeed, we think the Fed needs to do five rate hikes through to end 2019. But that's not the only way an economy can slow. Financial conditions need to tighten. And, a slow down is going to create a lot of volatility for asset classes, as was the case in Oc...