With consumer confidence falling, predictions of a rise in inflation and government spending increasing, greenspan has a tough job
Long-term interest rates snubbed their nose at the decline in the dollar from 2002 through to 2004. They ignored the rise in the fiscal budget deficit, which hit a record $413bn last year. They even defied the Federal Reserve, which has raised overnight rates over the past 15 months from 1% to 3.75% last month. Now, with the US government embarked on an overt spending spree, whatever it takes, to rebuild New Orleans and coastal areas devastated by Hurricane Katrina (not to be confused with the covert spending spree of the last five years), is fiscal policy about to upend the bond market? ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes