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

How insurers are tackling the illiquid asset challenge
James Fermont discusses how there has been a step-change in insurers’ engagement and willingness to take on illiquid assets from DB schemes —and why
Solvency under scrutiny
The topic of solvency has garnered significant attention recently, with the results of a Europe-wide stress test shedding light on insurers’ positions
Bitcoin is it currency a store of value or pure speculation
Bitcoin has generated significant interest among investors, institutions, and governments worldwide. While some view it as a potential future currency

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.