Ratings agency Standard & Poor's has upgraded US outlook to stable from negative. The current rating stays at AA+. The Federal Reserve was also upgraded from negative to stable.
We are revising the rating outlook to stable to indicate our current view that the likelihood of a near-term downgrade of the rating is less than one in three.
We believe that the U.S. monetary authorities have both the strong ability and willingness to support sustainable economic growth and to attenuate major economic or financial shocks.
We do not see material risks to our favorable view of the flexibility and efficacy of U.S. monetary policy. We believe the U.S. economic performance will match or exceed its peers' in the coming years. We forecast that the external position of the U.S. on a flow basis will not deteriorate.
S&P upgrade is about as important a data point as strong NFP. The case for QE just got a hell of a lot weaker.— financial acrobat (@finansakrobat) June 10, 2013