The Brexit hangover could create headaches for the U.S. economy.
A handful of economists are already downgrading their outlook for U.S. growth this year after Britons voted to leave the European Union. The vote sparked severe volatility in stock markets and a rally in the dollar. For America, that’s a one-two punch.
Experts at Goldman Sachs (GS), Barclays and Bank of America (BAC) lowered their forecast for U.S. economic growth. Other economists too told CNNMoney they anticipate reducing their outlook later this week but requested not to be named since the forecasts weren’t public yet.
The reductions are minor for now. However, the huge uncertainties unleashed by the vote, along with the stock market selloff, are the key reasons behind the volume being turned down on U.S. growth.