Us treasury secretary janet yellen called the downgrade arbitrary and said Economic Conditions had improved under the biden administration. The news of the downgrade came after the close of trade on wall street but in asia investors have been pulling out of equities in reaction. Lets look at markets now in asia. Japan is currently down by over 2 . Hong kong not that far behind. This was off the back of yesterday, and most of this week we have seen the sharemarket, certainly wall street and asia having a strong session but this is certainly spooked sentiment. Lets discuss this with tom stevenson, whos an Investment Director at fidelity. Good morning. Janet woody allen saying this is arbitrary. I have her statement janet yellen and she said she strongly disagrees and says it is based on outdated data. That is based on outdated data. That is riuht. Is based on outdated data. That is right it is based on outdated data. That is right. It seems is based on outdated data. That is right. It s
hard to see the information that fitch has now is any worse thanit that fitch has now is any worse than it was two months ago when the crisis was resolved. i when we look about what it is saying about the outlook for the us economy, what i saw it says over the next decade high interest rates and rising debt will increase interest service burden. v will increase interest service burden. , ., burden. but it s also looking at the ageing burden. but it s also looking at the ageing population - burden. but it s also looking | at the ageing population and the cost that will ensue, rising healthcare costs will raise spending even more, spending more on medicare and social security. it is quite an in depth look at what is ahead for america, which is true for many economies? absolutely. that is not many economies? absolutely. that is not a many economies? absolutely. that is not a america - many economies? absolutely. that is not a america specificl that is not a america specific pro