US: Buoyant activity – BNP Paribas

US economy’s economic activity has been buoyant so far, largely thanks to tax cuts, according to analysts at BNP Paribas.

Key Quotes

“For the foreseeable period, a landing is more than a possibility nInterest rates hikes and tariffs increases on worth $300bn of imports will start to weigh on firms profitability, then activity.”

“The downward adjustment could be sizeable in highly leveraged sectors such as energy and IT. As a consequence, the monetary tightening could rapidly come to an end, after a supplementary 50-75 bps hike in key rates.”

“Long term-bond yields would also stabilize, at around the 3pct level.”

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