US Growth Forecast Lower After Brexit

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.

via CNN ^[1]

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Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.

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