News

Actions

2019: A volatile year for finance and the economy

Posted: 12:49 PM, Dec 13, 2019
Updated: 2019-12-13 14:49:57-05

NAMPA, Idaho — The United States and China have come to an agreement on phase one of a trade deal where the U.S. would cancel future tariffs and rollback penalties on current tariffs for Chinese goods, in return China will purchase American products in the agricultural and manufacturing sector.

In the past year the United States has imposed $550 billion in tariffs on Chinese products, in response China imposed $110 billion in tariffs on American goods.

"We have started to feel an impact when we go to the store," said David Fullmer a financial expert at Premiere Alliance Financial Companies in Nampa. "We've had a lot of volatility this year with ups and downs."

In 2019 the Federal Reserve also lowered interest rates for the first time since the Great Recession and they did it three times in an effort to stimulate the economy.

"It is less expensive to borrow money, but people that were used to getting high rates of returns are getting much less," said Fullmer. "So it 100 percent had a positive and negative impact on our economy."

As for phase one of the China Trade Deal President Trump did not get the structural changes to China's economy he was hoping for, but he tweeted that negotiations on phase two will start right way.

But as we head into 2020 it has become more difficult to understand the status of the economy and what will happen next.

"We have analysts telling us the market is falling apart and the next day analysts telling us it has never been this good," said Fullmer. "The reality is it is somewhere in between."