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

2026 M&A Outlook with 5 trends firms should track for 2026
Buyers have learned to normalise and move through uncertainty, supported by lower financing costs and increased confidence in future growth prospects.
The regulatory future for sole trustees
Last month the Association of Professional Pension Trustees (APPT) published its revised sole trustee code of practice, effective from 1 January 2026.
The Purple Book 2025 Webinar
In this exclusive webinar, Professional Pensions editor, Jonathan Stapleton, is joined by our Chief Actuary, Shalin Bhagwan, and our Actuary, James Em

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

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