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Movers & Shakers of US economy: Here 7 key trends in 2017

As US economy continues to progress JP Morgan lists some economic signs that could decide its course.

1. Fiscal Stimulus

Donald Trump revealed management and Nice strongly loyal to Bossi, the scale of support for business growth. While some of the initiatives, such as cutting regulations and increased spending on infrastructure, it may take several years to affect the economy, and the promise of tax reform has already prompted a boom in the stock market. This could be followed rising stock proactive this winter through an increase in the GDP and the effects of the tax reform became clear. Economists estimate the tax non-partisan stimulus plan could boost GDP by 1 to 1.5 percentage points.

2. GDP Growth may Quicken

After years of relatively slow growth is expected to grow by 2.3% over 2017. Although this can be compared to slow in previous decades, it represents strong growth in the age of the demographic decline of the American economy. This year could bring a boom in productive work conductivity such as business investment cycle is approaching the peak of technology and capital to start repayment.

Stable wage growth and low inflation are likely signs that the economy still has room to grow, so a period of great expansion in the upper part of the business cycle is still possible.

3. Slowing Job Growth

The labor market will add functionality in the pace of the mentioned trend, the country's supply of workers inactivity is nearly the former exhausted. While the labor market still has room to expand, PAND wage growth, wage growth began to accelerate, an indication that the entire Menna hiring may be on the horizon. As the ranks of workers available to start decreasing, hiring activity is likely to slow again to harmonize with the underlying rate of population growth.

4. Interest Rate Normalisation

The Fed projects gradual series of rate hikes in the coming years, and the expectations of the market began to rise in line with the average forecast (FOMC) of the Federal open market committee. Each of the futures market and the Fed expected to small rate rise in 2017, with interest rates ending the year higher than 1%. It is likely that the Federal Reserve is guided by inflation.

5. Oil Stabilises

It began the global abundance of oil to evaporate in 2016, with the rise in crude oil prices to rise 45% after a sharp drop in exploration and OPEC agreement to cut the new rolling mill for professionals. Where the jump in global demand to meet current production capacity, the rise in oil prices is likely to make eventual shale fields in North America itable professor again. And increased oil production in the United States increased by 6.3% since the middle of last year to 8.96 million barrels a day.

6. Climbing Dollar

With the economy of the United States was preparing to return to full strength, and the rate of interest the ongoing normalization and other central banks, the main relay with their own versions of the asset purchase programs, and the dollar was gaining.Japan and the euro zone are improving gradually, but central banks are locked in quantitative easing programs that paid to effectively reduce the exchange rate, at least for now.

7. Routine Volatility

This time last year, the stock market fell sharply in response to slowing growth in China. At the time, causing a bear market spreads terror and wide, but in the retro-SPECT, and deflation does not seem remarkable. The market quickly regained its losses, China stabilized the rate of growth more sustainable and to maintain the broader create new jobs and increase wealth.It US economy can debug an unexpected situation at some point in 2017 possible.

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