Goldman Sachs made 10 predictions about the US economy in 2019. Three of them were incorrect.
Bank Chief economist Ian Hatzius and his team made the right predictions for the growth of the US economy, recession, tariffs, unemployment, wages, the Federal budget deficit and broader monetary policy.
However, the forecasts regarding inflation, interest rates and the money supply did not materialize, said in a research note.
the Goldman Economists predicted two rate hikes by 25 basis points this year. Instead, the Federal reserve lowered rates three times within a few months.
They expected that the fed will continue to cut a huge bond portfolio, which she has accumulated, strengthening the U.S. economy during the financial crisis. Instead, the Central Bank has ceased its efforts to reduce its balance sheet in July and announced that he will increase it again in October.
finally, Goldman predicted that the price index for personal consumption expenditures "will be reduced significantly to about 1.5% yoy in November 2019, up from 2.0% a year earlier," while it has grown significantly.
