U.S. officials need to outline more clearly their plans to reduce the nation’s fiscal deficit, said Stephen Roach, Morgan Stanley’s non-executive chairman for Asia.
“What the markets are ultimately going to want is far more specificity and credibility on deficit reduction and normalization of Fed policy,” Roach, 64, said during a radio interview with Tom Keene on Bloomberg Surveillance.
President Barack Obama said on July 15 his economic- stimulus program is gradually pulling the U.S. out of the economic slump. The nation’s budget deficit is forecast to swell 14 percent this year to a record $1.6 trillion. Obama has said he will offset spending by more than $1.2 trillion over 10 years, partly through a freeze on many domestic programs and more than $800 million in higher taxes and fees on households earning more than $250,000.