Threadneedle cuts US growth forecasts by 50bp

In the short term there could be some volatile movements as a result of settlement and liquidity problems. It is virtually impossible to predict these movements over the next three to four days. All we can say is that Central Banks will be as accommodative as possible in an attempt to avoid any escalating liquidity worries. The medium term effects are rather more important. The US economy has been slowing and has not yet responded to this year's interest rate cuts. This event will clearly be a blow to US consumer confidence at a time when the consumer was already beginning to falter. The...