Kroll Bond Rating Agency Releases Macro-Market Research Report: “Global Deflation & Credit Spreads”

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) releases a Macro-Market research report entitled, “Global Deflation & Credit Spreads”. The report makes the following key points:

• KBRA believes that the FOMC is facing an impossible and increasingly untenable situation. On the one hand, economic indicators such as employment, inflation, GDP and particularly credit demand do not justify an interest rate increase. On the other hand, the U.S. central bank must soon allow rates to rise to restore market function and avoid further damage to investors, financial institutions and the economy
• We believe that the decrease in income for savers and investors that is part of the FOMC policy mix is making it increasingly difficult to achieve the committee’s stated job and inflation targets and is, in fact, driving global deflation. KBRA believes that the Fed and other agencies in Washington must now shift focus from ensuring market liquidity to increasing investment, and thereby income and growth.
• KBRA believes that investors and policy makers need to reconsider the basic assumptions driving U.S. monetary policy and appreciate that low interest rates are part of the problem, not the solution, when it comes to avoiding deflation and restoring growth. We believe that the FOMC needs to embrace a shift in policy away from subsidizing debtors and toward RESTORING income for both consumers and investors.

Follow us on Twitter!@KrollBondRating

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Analytical Contact:
Kroll Bond Rating Agency
Christopher Whalen, Senior Managing Director
(646) 731-2366
[email protected]

Source: Kroll Bond Rating Agency

You May Also Be Interested In

• Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
• Tungray Technologies (TRSG) Closes $5M IPO
• Greenwave Technology Solutions (GWAV) Strengthens Balance Sheet