Uncertainty Stealing the Spotlight
The year’s lackluster finish has many economists predicting growth slowing in 2019. On the bright side, there are a lot of economic barometers that still look good and support continued growth. Unemployment is at 3.7 percent, the lowest in decades. Inflation is within the Fed’s target range. Pay growth is accelerating and consumers boosted their spending during the holiday season. The market, however, seems to be focused on uncertainty as concerns over higher interest rates, political turmoil in Washington, U.S./China trade disputes, and global growth have intensified interest in “safe havens.” As a result, 10-year Treasury yields, currently at 2.66 percent, are now at levels not seen since the first few months of last year.