Tim Mullaney: The economic slowdown looks like a hiccup — but then what?

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The recent blip toward economic slowdown — which assured the Federal Reserve doesn’t raise interest rates this week — won’t last. But does that mean the Fed will come off the sidelines later this year, and hurt stock investors the same way it did in late 2018?

Those are the two provocative questions posed by Pantheon Macroeconomics chief U.S. economist Ian Shepherdson, arguing that the stock market is getting too complacent about the idea that the central bank will let the economy run hot because forces pushing the U.S toward a slowdown are so strong.

There really are two questions. First, is the economy running hot, or will it soon? Only then can you answer the second: What should you (the reader) do about it?

“The scene is set for a much more difficult second half of the year for markets, which are very happy with the idea that the Fed is never raising rates again.

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