Nomi Prins: More Corporate Defaults, Central Bank Desperation in 2017
Nomi Prins: More Corporate Defaults, Central Bank Desperation in 2017 by Craig Wilson
Nomi Prins joined Yahoo Finance and The Final Round’s Jen Rogers to discuss the events facing 2017 – including increased corporate defaults, market volatility and the impact of oil under Rex Tillerson at the U.S State Department.
When posed the question about economic growth and the incoming Trump administration Prins did not mince words saying, “Ultimately what is going to happen is he’s not going to be able to push a “mega fiscal budget” through a Republican Congress, nor will he try. Nor will he be able to sustain the kind of growth that he has promised. There may be a PR element, but in terms of actual conversions and the practical realities of the economy, that was weak to begin with for so many people, that’s not going to be a reality. That is going to take its toll on not just our stock market, but will add uncertainty into the rest of the world that is looking at these expectations.”
Nomi Prins is the best selling author of All the Presidents’ Bankers and is currently working on her latest book, The Artisans of Money. Prins is a former Managing Director at Goldman Sachs and worked at an array of the most influential Wall Street banks. She continues to be a strong advocate for a modern Glass-Steagall Act and breaking up big bank institutions that pose a threat to the global economy.
When asked about the outlook for the Fed, growth projections, and whether the U.S central bank will have to get ahead of inflation she responded, “We have had a price inflation, in terms of the cost of living, but we haven’t had inflation in terms of the areas that the Fed actually measures. What was interesting about when the Federal Reserve raised rates in December, which had been done a year earlier in December as well, was that they projected last year (after examining what they’re looking at for forecasts based in growth and the economy) four rate hikes, we got one. This year they have only projected three. In effect the status on their own projections is actually more accommodative than it was the year before.”