Richmond Fed's Barkin expects growth to continue
Richmond Fed's Barkin expects growth to continue, albeit at a somewhat slower pace, with trend growth in the 1.9% range. The non-voting moderate said he hears concerns about how long growth can continue, partly driven by trade, politics, market and margin pressures, while the productivity slowdown is real, due partly to business under-investment. "But as analysts enter 2019, I hear a lot of concern. Some is environmental, driven by trade, international economies or politics. Some is market driven, as volatility has increased and the yield curve has narrowed. Some is margin pressure. But overall, the question I hear most is, "How long can this growth continue?," he said. This is in line with the recent more flexible tone at the Fed and should be echoed by others, including Chair Powell, later.