the economy is showing some signs of a better housing market.We see less of a chance of a systemic failure as banks are cleaning up their balance sheets.
US Banks have shown via our stress tests they are in a better position than last year. Still need to be cognizent of potential global slowdown, particularly in EU. Contagion is a factor, but represents a small risk.
We see low I rates well into 2014 and although UE has toicked down, the public sector could easily tick up and weigh on the numbers, while the private sector continues to modestly improve. Our target remains our target and is unlikely to be achieved in 2014.
The sequester and Congressional gridlock continues to hamper our views of increased GDP beyond 2 to 2.25%.