Tag: U.S. finance

Moody’s Changes Outlook from ‘Negative’ to ‘Stable’

For the first time since 2008, Moody’s has upped its outlook of the U.S. banking system as a result of improving economic conditions that compensate for low interest rates.

Moody has changed its outlook to ‘stable’ from its former status of ‘negative’ which has lasted nearly half a decade.

According to BigPond News, Moody’s says “sustained GDP growth and improving employment conditions will help banks protect their balance sheets, and after another year of reducing credit-related costs and restoring capital, U.S. banks are now even better-positioned to face any future economic downturn.”

The agency added that low interest rates will have the most impact on financial performance over the next 12-18 months.

traducción español

Moody cambia la perspectiva de ‘Negativo’ a ‘Estable’

Por primera vez desde el 2008, Moody ha elevado su perspectiva del sistema bancario de los Estados Unidos como resultado de las mejoras en las condiciones económicas que compensan las bajas tasas de interés.

Moody ha cambiado su perspectiva a ‘estable’ de su pasado estado de ‘negativo’ que ha durado casi media década.

De acuerdo con BigPond News, Moody dice “el crecimiento sostenido del GDP y las mejoras de las condiciones de empleo ayudará a los bancos a proteger sus balances, y después de un año de reducción de costos relacionados al crédito y restaurar capitales, los bancos de los Estados Unidos están ahora aún mejor posicionados para afrontar cualquier recesión económica.”

La agencia agregó que las bajas tasas de interés tendrán el mayor impacto en el rendimiento financiero durante los próximos 12 a 18 meses.
English translation

IMF and U.S. Worried As Recession Looms Closer

The United States are struggling with internal and external stressors, as critics claim that failure to implement a new plan will result in another worldwide recession.

George Osborne, U.K. Chancellor of the Exchequer, said “People are concerned.” He added that there “was quite a lot of discussion” at the annual IMF meeting this week.

The current plan lingers around the idea of the U.S. incurring $100 billion in automatic spending cuts, as well as over $5 billion in expiring tax reductions in January. This week, the IMF claimed such a deal will undoubtedly tighten fiscal policy by 4% of GDP, the most since the 40s.

“It’s a very serious situation for all of North America and for the entire world,” said Jim Flaherty, Canadian Finance Minister. “It means we’ll all go into recession. So it’s important this gets dealt with.”