Van Hesser says the U.S. economy looks pretty good — if you avoid thinking too hard about “70 years of stability all coming unglued.”
Hesser, a senior managing director at Kroll Bond Rating Agency, gave his assessment of the how the economy might perform in 2020 today in New York, at a KBRA media briefing.
KBRA is one of the rating agencies that’s been trying to compete with A.M. Best, Fitch, Moody’s, Standard & Poor’s Ratings Services and a few other firms for bond rating business. It’s especially well-known for efforts to rate commercial mortgage-backed securities, collateralized loan obligations, and fraternal insurers.
Hesser said he sees some of the strengths supporting the economy being strong bank profitability and williingness to lend, low borrower default rates, and an accommodative Federal Reserve System.
But he said an even more important factor may be a U.S. consumer who’s employed, confident and shedding debt.
“The pillar of the world economy is based on the U.S. consumer,’ Hesser said.
Hesser said one major concern is the U.S. government’s financial status. KBRA views the United States as being a AAA credit because everyone uses the U.S. dollar as a reserve currency, Hesser said.