Financial imbalances including those in credit markets and the crypto currency will overshadow the US economy that will strengthen in 2018, Goldman Sachs Group Inc. economist Jan Hatzius said in a statement released by Bloomberg on Sunday (31/12).  Hatzius has made some predictions for the new year, four interest rate hikes by the US Federal Reserve, the growth of real gross domestic product that is so fast that it reaches about 2.6%, the decline in unemployment to around 3.5% and not there are signs of risks.
In a new report, Hatzius repeated his hopes for a better overall economy, despite some concerns.
"Asset valuations in some areas, especially in credit, have risen to levels high by historical standards, "Hatzius said in a report on" 10 Questions in the Year 2018 "issued Last Friday (29/12).
"Although we have not yet seen the kind of big credit expansion that will be particularly worrisome to the American Central Bank's official financial imbalances, there are now some signs of speculative behavior in financial markets, such as crypto currency spikes. "
Goldman Sachs is not the only company to deliver warnings about crypto currency.
Previously, JPMorgan Chase & Co. officials Jamie Dimon calls bitcoin "fraud". US Central Bank President Janet Yellen said bitcoin was a "highly speculative asset", while Central Bank Governor Haruhiko Kuroda said bitcoin was used for speculation. Goldman Sachs also reported setting up the crypto currency trading department.
On the positive side, Hatzius said, the housing sector for families will begin to rise further as demand and supply imbalances continue to compete, despite adverse changes from newly signed tax legislation law by President Donald Trump.
Wage growth in America will improve with the waning of statistical distortions, and there is "evidence that high-income households have tried to delay wage increases in the hope of obtaining lower tax rates," where this could hold some wage data until now, Hatzius said. He added, core inflation will also increase from the current 1.5%. The price of imported goods burdening personal consumption expenditures (PCE) will turn into a boost in the coming year. [em/al]