U.S. Outlook: Financial markets go haywire

Scott Anderson
Posted by Scott Anderson
Chief Economist

With recent sharp swings in oil, foreign exchange, and equity markets, it appears the markets are trying to tell us something – but what?

graph_oilprices_010915In this week’s report, we take a closer look at three possible themes driving the markets’ activity.

Below are highlights of my weekly economic analysis, followed by a link to the full U.S. Outlook report, delivered on Jan. 9.

Key observations:
  • The oil price drop and subsequent disruption is a net positive for the economy.
  • We estimate real consumer spending growth for the fourth quarter to be 4%.
  • The U.S. dollar’s strength is creating downside risks for exports, manufacturing, and business investment in 2015.
  • If Eurozone deflation becomes entrenched, it will weigh more heavily on European demand.

 

Click here to read my full report.

 

Reminder: All comments are moderated prior to publication and must follow our Community Guidelines.

Submit an Idea

[contact-form-7 id="32" title="Share An Idea"]

You are leaving the Bank of the West Blog. Please be aware: The website you are about to enter is not operated by Bank of the West. Bank of the West does not endorse the content of this website and makes no warranty as to the accuracy of content or functionality of this website. The privacy and security policies of the site may differ from those practiced by Bank of the West. To proceed to this website, click OK, or hit Cancel to remain on the Bank of the West Blog.