Inflation joy
Article Abstract:
US interest rates may drop, according to Credit Suisse First Boston, wgich predicts a slowdown in economic growth. This means that an increase in the trade deficit will help the economy because low inflation will be imported. Inflation may fall to 1.5% at the end of 1998 but the Federal Reserve could keep interest rates at 5.5% to push inflation down further. Bond issuance is likely to drop as government borrowing falls. Equities should perform well if costs can be controlled by productivity growth.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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US: bear surprise
Article Abstract:
US corporate earnings are likely to show good growth in 1996, according to Thomas McManus from Morgan Stanley. Aggregate performance of earnings is above expectations, though some disappointments have been given publicity. The time lag following changes in interest rate policy could mean that the US economy revives. Foreign sales of US firms are increasing and productivity should be aided by industry consolidation. Growth is also possible without debt levels becoming dangerous.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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