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Economy’s Recovery Gaining Momentum?

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  • Description

    Citibank Global Head of International Economics Nathan Sheets on the state of the U.S. economy.

  • Duration 3:40
  • Date

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Now for his outlook on the markets and the economy for the remainder -- broke what is.

A year this beginning so well Nathan sheets.

The global head of international economics for Citigroup the behavior and it's -- to be here this are we seeing a real recovery take hold here.

And give -- your your sense of I -- certainly -- Hope -- were in the midst of recovery.

I think we've seen as strengthening housing sector and that's very positive.

Households are making some progress in cleaning up their balance sheets that's good as well.

But I think the real missing element they have a sustainable recovery as we need more confidence in the business sector.

And I think the businesses continue to wait for a little bit more progress out of Washington.

Waiting that's for questions now about community -- -- -- -- -- all I can live on Washington Obama but allows the pizza geography -- -- will be competitive -- right.

The idea that the fiscal player there's been resolved as best it can be at least for -- to this point.

We have another month and a half to go on deferred.

Sequestration.

Budget cuts automatic and and and the tax hikes that -- -- already been put in place -- which even more will befall us.

What is your I mean there are these guys making more sense than usual or is this is going to be another rope a dope session.

Well I think the resolution of the fiscal cleft got us a little bit further toward debt sustainability.

Going back to 2011.

We needed about four trillion dollars of cuts over a ten year period -- now we're about halfway there are with.

The agreements have been put in place so far.

And the question is are we gonna go are we gonna go further or not and -- these that I -- you -- they'd -- wouldn't say they may be very uncomfortable listening upon past.

That that the economy needs certain.

And it seems like the we're still hearing a lot of noise.

We're hearing a lot of noise we're watching a lot of nothing as usual in Washington DC.

I'm also hearing a lot of nothing from the business leaders CEOs to be very candid about it.

We're hearing a -- whining and moaning and and and dog gone little.

Well excitement.

From the from the business sector about innovations.

About new markets about new strategies.

But you don't want the earnings.

Seemed to hang on -- there I mean and it looks like there's a lot of the you know potential.

Besides cost -- Of course singles the level of earnings -- in the corporate sector right it was very high.

We're seeing earnings growth decelerate some and that's likely continue.

If we don't get to a place where the firm start feeling more comfortable investing in higher.

And that really is the missing link here we need to see more investment and hiring for the corporate and business sector.

This currency member.

Being -- -- 23 million Americans.

Move to productive.

Our roles that you know that are supposed to be the birth rates of Americans are.

GP grow through -- quick what do you expect this year.

I'm expecting something like 2% in the first half of the year but I'm hopeful what we'll get enough uncertainty resolved.

It would get this investment and hiring that we discussed in the we'll see something closer to 3%.

Borrowers are very much holding very much holding my abrupt end though we'll see what -- -- they've always good -- my pleasure thank you.

Rubber.

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