NEW YORK–(BUSINESS WIRE)–We enter 2023 amid a challenging and uncertain economic backdrop. Thanks in large part to aggressive federal stimulus measures during the Coronavirus Disease (COVID-19) pandemic, the U.S. economy had been humming along over the 18 months leading up to the spring of 2022 when the first quarterly decline in real GDP was reported following six consecutive quarters of growth. The Federal Reserve reversed course and pulled back from its accommodative monetary policy measures, with the first of seven successive interest rate increases occurring in March 2022. Nonetheless, DBRS Morningstar has a stable credit rating outlook across U.S. asset-backed securities (ABS).
“While consumers have displayed remarkable resiliency throughout the pandemic, much of that strength has been heavily supported by federal stimulus measures, which have since expired,” said Stephanie Mah, Senior Vice President, Structured Finance Research. “The current labor market remains strong, with subdued unemployment levels and rising wages. However, job growth prospects are expected to deteriorate, albeit with a lag, in response to rising interest rates, and wages will be further pressured by inflation.”
To read the full report and access the data, click here: https://www.dbrsmorningstar.com/research/408194/us-abs-2023-outlook
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Stephen Bernard
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+1 212 806 3240
Stephen.Bernard@dbrsmorningstar.com
Media
Stephen Bernard
Vice President, Corporate Communications
+1 212 806 3240
Stephen.Bernard@dbrsmorningstar.com