2018 was an excellent year in terms of economic growth. The GDP grew by 3.4% in 2018 compared to 2.2% in 2017¹. Looking at 2019, the question is whether The Federal Reserve will go too far and raise rates too much, resulting in a slow-down of the economy.
At the beginning of the year, the Prime Rate was 4.5%² and at the end of the year the it was 5.5%³, being an increase of 100 basis points and an overall increase in interest rates of 1.00%.
The economic talking heads are predicting a GDP growth of 1.8% in 2019⁴. We will keep you informed about these facts and figures on a quarterly basis.
United States (USA) GDP – Gross Domestic Product – CountryEconomy.com
Prime Rate History (Monthly) – FedPrimeRate.com
United States Prime Rate – FedPrimeRate.com
U.S. Economy Will Slow in 2019, May Enter Recession in 2020, Economists Forecast. Trump Administration Disagrees – Fortune.com