The success of the Brexit movement, fed by stagnant wages and resentment over inequality since the Great Recession, is one more jolt for a global economy left bruised by years of crisis fighting that’s restricted momentum. “We’re pretty sure that world economic growth is going to notch down a bit,” said Alan Blinder, a Princeton University economist and a former Federal Reserve vice chairman. “Yellen’s already made it clear she sees this as one of the most significant global economic risks of the year,” said Chris Low, chief economist at FTN Financial in New York. The OECD said this month that the global economy is stuck in a “low-growth trap.”“Uncertainty is a killer for capital spending,” said John Ryding, chief economist at RDQ Economics in New York. Yet the European Central Bank may struggle to support the economy further at a time when its policy instruments are already stretched.

Source: Mint June 25, 2016 07:41 UTC