HSBC view on the outlook for the US economy

HSBC Private Bank (UK) Limited - July 2009

Over 250 clients and guests attended the HSBC Global Forum in Miami at the Vizcaya Museum on February 18 2009 to hear the HSBC viewpoint on the outlook for the US economy. The HSBC presenters for the Forum were Ian Morris, chief HSBC economist in the United States, and James Steel, chief HSBC commodities analyst in the United States.

Chief HSBC economist in the United States, Ian Morris presented his views on the outlook for the US economy.

Mr. Morris conditioned his outlook on the ability of the Federal government to move successfully on both fiscal and monetary policies. First, the stimulus package, recently enacted, must be implemented swiftly and effectively targeted. Second, the Federal Reserve must use its inherent powers and balance sheet aggressively. Third, the combination of Presidential/Congressional and Federal Reserve actions must quickly address the problems of the banking system.

"Some analysts have said we are in a once in a century crisis," concluded Mr. Morris. "In 2009 we need to see a once in century policy response from the Government and that will make for a quite exciting and intriguing year. However, getting it right is essential if we are to have economic recovery."