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Publication Date:
February 2019
A monetary policy shift by the Federal Reserve could mean lower capital costs for business. GDP growth is still likely to slow back toward its long-term trend this year as stimulus measures ebb. Business and consumer confidence have been declining due in part to concerns about slowing growth. However, the end of the government shutdown and the announcement of the Federal Reserve’s changed policy perspective boosted stock markets after a sharp downturn. These events may also help restore flagging business and consumer confidence back to previous levels, unless an inflation pickup forces the bank to reverse course.