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3 reasons the US will drive global growth in 2014
The Fed may have at last started tapering its bond buying programme. And Mads Koefoed, Saxo's Head of Macro Strategy, says it's about time. In 2014, he says the US will be the driver of global growth in 2014.
The dollar largely strengthened on the news that the Fed was going to reduce its asset purchases by ten billion dollars a month. Both the Dow Jones and the S&P 500 hit record highs.
Mads gives three reasons why the United States will have a good year.
First, George W Bush's tax cuts ended last year which dragged down consumer spending. That won't be such a big issue in 2014 and growth will be less hamstrung.
Secondly, now that Congress has agreed on a budget for 2014, spending will increase which will help public consumption.
Thirdly, investment is set to get better. Mads says the housing market will continue to improve; we're still far below normal levels in construction and building permits, he says. Just another reason America will be an engine for global growth in 2014.
01:20 minutes
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