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Policymakers Hold the Key to Confidence

August 29, 2012

Policymakers around the world, perhaps with the exception of Japan, are trying to stimulate economic growth and appear willing to sacrifice rising asset prices in order to get the job done.

-Bob Doll, senior advisor, Blackrock


All Eyes on Policymakers

Policymakers around the world, perhaps with the exception of Japan, are trying to stimulate economic growth and appear willing to sacrifice rising asset prices in order to get the job done.

In the United States, we continue to foresee gross domestic product (GDP) growth in the area of 2% for the remainder of this year and next. We would stress that the risks are to the downside, particularly if there is a disorderly breakup of the eurozone and/or Congress fails to reach an agreement to avoid the so-called fiscal cliff at the end of this year. If either of these events were to occur, the US could be pushed back into a recession.

 

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