Federal Reserve chairman testifies before Congress 20191113
Economic indicators
Inflation is at all time low
Unemployment is at all time low
Consumer confidence is at all time high
Productivity has slowed down
Business investments and manufacturing has contracted
Key take aways
China is doing a responsible job deleveraging it’s economy. This is one of the key drivers of economic slow down around the world apart from the ongoing US/China trade war
Global deflationary trend drivers
partly driven by worldwide aging population which sees increased savings rates and lesser consumption
automation and globalization
Ballooning US debt is a concern. Need to bring debt growth rate below productivity growth rate to be sustainable in the long run
The effects of the sugar rush from the 2017 tax cut is still evident within the economic system
Negative interest rates only makes sense in a large economies where growth is really sluggish. That is not the case for US where growth is strong and productivity is still high.
Need to focus on education to prepare work force for the global economy
US GDP is growing at 1.5% of which 0.5% is contributed by immigration
