WASHINGTON D.C. (ABC4 News)- After a brutal Christmas Eve for the market, people are wondering what the financial future holds in the new year.
Seeking to calm jittery investors, Kevin Hassett, the chairman of The Council of Economic Advisers, said Wednesday recent declines in the stock market are not signs of a slowing economy.
“The fundamentals remain extremely sound,” Hassett said. “Christmas sales are through the roof.”
Hassett says GDP growth in the fourth quarter appears to be solid at near three percent or higher.
“So I think that the momentum we saw this year is carrying into next year.”
Experts say the government shutdown, a trade war with China, and other global factors all played a part in the biggest Christmas eve market sell-off in history.
For his part, President Trump is blaming the federal reserve for pushing up interest rated.
“They are raising interest rates too fast that’s my opinion. I mean the fact is that the economy is doing so well,” he said.
Hassett said Wednesday the Fed Chairman’s job remains safe. That appeared to ease worries on Wall Street, but uncertainty remains as the government shutdown has no end in sight and the trade war with China could escalate in 2019.