The US economy this week, what to expect? - Nomura

Analysts at Nomura explained that they expect fiscal policy, financial conditions, and a firming global outlook to support strong US economic growth of 2.7% in 2018. 

Key Quotes:

"Recent positive supply-side trends suggest that potential growth has increased modestly." 

"Nonetheless, we expect strong growth to continue to push down the unemployment rate over the forecast horizon."

"We expect a tightening labor market, healthy growth and fading transitory headwinds to push up inflation gradually. • Reflecting the strengthening, late-cycle outlook, we expect three hikes from the FOMC in 2018 and an additional hike in 2019." 

"The Fed balance sheet roll off will likely continue in the background, raising long-term interest rates only gradually."

"A sharp deterioration in financial conditions and aggressive trade policies by the Trump administration present notable risks."