Wednesday, 4 May 2016
By Shushanik Papanyan
As the gross debt-to-GDP ratio steadily rises, should the U.S. worry about its ability to repay debt, cut spending, and raise interest rates?
Or should the Federal Reserve keep interest rates low to spark the U.S. economy? According to our analysis, the U.S. debt sustainability is not an imminent threat, but further deterioration of the fiscal position and fiscal policy could lead to a downgrade in the nation’s credit rating and could spur a financial crisis.
With GDP growth slowing to 1.8%, we explore the question: will the future of U.S. potential growth be gloomy or bright?
In this brief, we analyze the trends that will drive the demand and supply for multifamily and single-family housing over the next 10 years.