Will the economy Slow or continue to Thrive?

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"The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely will end in 2020 as the Federal Reserve raises interest rates to cool off an overheating economy, according to forecasters surveyed by The Wall Street Journal."

 

Federal Funds Rate to Rise

The revered investor, Paul Tudor expresses his concern in the economy because real interest rates are pretty much zero. 

Real (interest) rate = Nominal (interest) rate - Inflation

Currently nominal interest is 2% and inflation is now crossing over 2%, thus the real interest rate is 0% and could soon hit negative. 

That is why, the speaker in the video thinks that the nominal interest rate should be much higher than what we have from the Fed now. So expect some more rate hikes folks. WATCH the video though because this investor knows a lot more than me.

Andrew Vargas