Monday, April 18, 2011
S&P cuts US outlook to negative on fiscal worry
Standard & Poor's downgraded the outlook for the United States to negative, saying it believes there's a risk US policymakers may not reach agreement on how to address the country's long-term fiscal pressures.
The S&P said the move signals there's at least a one-in-three likelihood that it could lower its long-term rating on the United States within two years.
"The headline has enough of a shock value. The initial reaction is that this is negative for dollar assets across the board." said Lou Brien, a market strategist with DRW Trading in Chicago.
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