Keith Banks And JJ Kinahan Weigh In On The Health Of The U.S. Economy

When asked about the health of the U.S. economy, Banks assured he feels good. In his view, the U.S. economy could retrieve a number around 3 percent in the fourth quarter. “You’ve got consumers very strong, and getting stronger, jobs being created, earnings are going higher,” he expounded.

Expansion And The U.S. Economy

Banks – president at U.S. Trust, Bank of America Private Wealth Management – explained his position by stating those at the firm believe “we are toward the middle part of the [expansion] phase than the end of the phase.”

In fact, he continued, the analysts at U.S. Trust think there are “at least a few more years… and maybe have break the record for the longest expansion that we’ve seen to date.”

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Then, JJ Kinahan, TD Ameritrade's Chief Strategist, chipped in, talking about jobs, which, he believes, “tend to solve a lot.”

“The one thing we are all waiting to see is wage growth,” he added. As the job market’s health improves, more people will be competing for talent, Kinahan explicated. This, in turn, drives up wages, which, in turn, translates into more spending, he stated.

However, people should take into account that wage growth is not the only figure to look at. “You’re seeing a lot of bonus type things being given [...] You have to take that as part of compensation.”