Articles - US outlook: fiscal policy, monetary policy & credit ratings

Schroders Quickview - US outlook: fiscal policy, monetary policy and credit ratings

 Comment from Schroders' US Fixed Income Team: David Harris, Senior Portfolio Manager, and Ed Fitzpatrick, Fund Manager on US fiscal and monetary policy and credit ratings –


 Key Points:

  •   A US downgrade to default (worst-case scenario) by the rating agencies will be a temporary event. The US has the ability to meet its obligations. 
  •   We do not see the weak jobs report as a sign we’re dipping back into recession, though the odds have certainly increased and the outcome is more dependent on fiscal and monetary decisions.
  •   We expect a very drawn-out monetary policy normalisation, with the effectively zero interest-rate policy with us for quite some time.
  •   We expect the debt ceiling to be raised to avoid a technical default.
  •   Fixed income markets are likely to be volatile in the months ahead as debt levels, fiscal policy and risk appetites clash.


 Read full article here.

Back to Index

Similar News to this Story

Mean Reversion in Equities
A common argument in favour of equity investments is that, even though they go down, they will bounce right back up again. Commentators may advise “
How to get the most out of your insurance consultant
More than half of UK life insurance companies (59%) will spend more on actuarial consultants in the next year. This is one of the key findings of our
Video of what a cyber attack looks like in the real world
Hackers and their scams live behind keyboards. Invisible and faceless. Hiscox show how it would look ff cyber crime happened in the physical world, th

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.