Finance & economics | Seeking a soft landing

Will America’s economy overheat in 2018?

The labour market is the healthiest it has been for at least a decade. But inflation remains low

|WASHINGTON, DC

USUALLY politicians pretend that good economic news on their watch is no surprise. But America’s recent growth figures have been so positive that even the administration of President Donald Trump has allowed itself to marvel. “It’s actually happening faster than we expected,” mused Mick Mulvaney, the White House budget chief, in September, after growth rose to 3.1% in the second quarter. (Mr Trump in fact came to office promising 4% growth, but the goal now seems to be 3%.) Mr Mulvaney warned that hurricanes would soon bring growth back down. Instead, in the third quarter, it rose to 3.3%—a figure celebrated with more conviction. The administration’s initial caution was wise: quarterly growth figures are volatile, and few economists expect growth above 3% to carry on for long. Yet there is no denying that the economy is in rude health.

This article appeared in the Finance & economics section of the print edition under the headline “The weight of expectations”

What to do about China’s “sharp power”

From the December 16th 2017 edition

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Traders work on the floor of the New York Stock Exchange

Even the Trumpiest stocks are suffering

Investors may have misjudged which firms would thrive under the new administration

The foot of a man goiung over a crack on the floor.

Beneath investors’ feet, the ground is shifting

More remarkable than slumping share prices are the forces behind them


Illustration of American flag balloon floats between tall green cacti against a soft pink sky

The Trump administration is playing a dangerous stockmarket game

American investors are extremely exposed to a sell-off—and so is the economy


America’s Democrats should embrace “abundance liberalism”

Two new books contain much to commend them

Where will be the next electric-vehicle superpower?

Three Asian countries make their pitch

Can anything get China’s shoppers to spend?

An economic recovery depends on it. Yet a new action plan may not do the job