US economic outlook remains weak despite trade truce with China — Reuters

According to a recent Reuters poll of economists, the outlook for the US economy remains bleak despite a cooling of trade tensions with China. The situation has been further clouded by discussions surrounding President Donald Trump’s tax-cut bill. The likely increase in the national debt and budget deficit contributed to Moody’s downgrade of the US sovereign credit rating last Friday.

In the Reuters poll conducted May 14–21, economists unanimously noted the negative impact of the current US president's administration's policy. Many of them note “significant damage” to the US economy.

Based on forecasts from the surveyed experts, the country’s GDP is expected to grow by 1.5% this quarter. However, Michael Gapen, chief US economist at Morgan Stanley, warned that current economic trends risk becoming the “base case” scenario for the American economy.

Representatives of the Federal Reserve (Fed) also noted the negative effects of US tariff policies. Consequently, they have decided to hold off on cutting interest rates in the next months.