US: GDP growth is accelerating - BNPP

US GDP growth is accelerating along with the recovery in the emerging countries and reinforcing world trade, but the fiscal outlook remains uncertain, according to analysts at BNP Paribas.

Key Quotes

“A fiscal stimulus still is possible, but it would not be implemented very rapidly. Potential effects are thus uncertain.”

“The labour market is as buoyant as ever. Still, the support to households’ disposable income is not as strong as it looks as wage inflation remains limited.”

“With inflation relatively muted at this stage of the cycle, the Fed is in no rush to increase rates. We forecast the Fed Funds target rates to come at 1.75% in Q1 2018 and at 2.00% by mid-2018.”