Fed's Mussallem: U.S. Growth Expected to Fall Significantly Short of 2% Expectations This Year

Gold Finance reports that Federal Reserve's Mussallem said he expects U.S. economic growth to fall significantly short of expectations of 2% this year. The baseline outlook does not point to a recession, but falling confidence, high prices, and loss of household wealth point to slower growth. Financial conditions are tightening, but the market failures seen in recent volatility have not been seen. Markets are reacting to the reassessment of global economic growth. Tensions between the dual mission objectives of the Federal Reserve increased as the risks of slower growth and higher inflation became apparent.