With selected research partners, we explore the future of risk coverage, assess changes in the risk landscape and act as a catalyst for industry change.
The US economy grew at a strong 2.9% pace in 2018, consistent with our forecast last year, primarily driven by increases in consumer, government and business spending. Despite a strong labor market, inflation fears have calmed with the consumer price index showing the slowest increase since September 2016, a result of sharp fall in energy prices. The absence of inflationary signs in the economy resulted in the Federal Reserve switching from a December rate hike to reiterating its "patient" approach towards monetary policy. Looking ahead, consumer spending remains strong, supported by improving consumer and builder confidence.
