Infosys Ltd., the Indian software developer which plunged last week after forecasting sales that lagged estimates, may struggle to win clients as U.S. President Barack Obama’s $85 billion in spending cuts prompts companies to rein in spending.
Federal Reserve Chairman Ben S. Bernanke should assure investors next week that “he’ll do whatever it takes” to stimulate the slowing economy, said Vincent Reinhart, chief U.S. economist at Morgan Stanley.
The Federal Reserve will resume its bond purchases at some point in a strategy known as quantitative easing to bolster the economy because it wants to maintain credibility, said Vincent Reinhart , a former monetary affairs director at the U.S. central bank.
Odds are about 50 percent that the Federal Reserve will buy additional assets to keep its balance sheet stable and stimulate a slowing U.S. economy, said Vincent Reinhart , a former director of monetary affairs at the Fed.
The U.S. economy will probably expand at a moderate pace this year and next, in part because fiscal tightening will weigh on growth, according to Vincent Reinhart, chief U.S. economist at Morgan Stanley.
Vincent Reinhart, chief U.S. economist at Morgan Stanley, said the U.S. slipping over the so- called fiscal cliff at the end of the year may be acceptable if it allows U.S. politicians a few extra weeks to come up with a budget deal.