Standard & Poor’s (S&P) credit ratings agency has lowered its U.S. growth forecast warning of “significant downside risks” from federal spending cuts.
“We’ve lowered our forecast for U.S. GDP growth in light of the additional sequester spending cuts in 2014 as well as the potential for another political standoff in Washington after the October government shutdown,” S&P said on Monday, ahead of the bipartisan budget deal struck in Washington.
“We now expect the world’s biggest economy to expand 2.6 percent next year, down from our forecast of 3.1 percent at last quarter’s Credit Conditions Committee meeting,” it added.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.