U.S. economy expected to expand just 0.3% in Q4

The gross domestic product will hardly move in the fourth quarter, warns a new report by the Federal Reserve.

According to the Fed Bank of Atlanta’s GDPNow report, the October-to-December period is anticipated to come in at just 0.3 percent. This nearly matches the New York Fed’s GDP Nowcast GDP growth projections of 0.4 percent.

The U.S. economy had advanced 3.1 percent in the first quarter, two percent in the second quarter, and 1.9 percent in the third quarter. The biggest factor is the U.S.-China trade dispute, which is still unresolved, despite optimism from both governments and financial markets.

Although Fed Chair Jerome Powell confirmed his semi-annual testimony to Congress this week that the central bank has hit the pause button on cutting interest rates, the Eccles Building will likely bring down interest rates even more in 2020 to sustain economic growth.

Is a trade deal enough to reverse the downward trend? Or, has the damage already been done?