S&P Global Ratings chief officer, Moritz Kraemer, speaks to Bloomberg
- Prolonged shutdown could be a drag on US growth
- Every day, there's a loss so there's a slight dampener on the outlook
- If it's a short-term phenomenon, don't think will do much to the economy or the Fed
- All things equal, tax reform should stimulate economy and give additional impetus to raise rates
- When we lowered rating on the US in August 2011 from AAA to AA+, it's due to the thinking that political institutions in US are such that timely effective policy making is more questionable than other AAA-rated sovereigns
Well, he's not wrong on that last one I guess. He also adds that the shutdown is "just another reincarnation of that assessment".
Anyway, just some general comments as there should be more comments from many parties on the shutdown to come.
The dollar remains mixed against the major currencies still, after recouping some of the day's earlier losses. Nothing else happening so far as markets remain quiet. EUR/USD at 1.2228, USD/JPY at 110.80.
