Why Are These CEOs Feeling Fiscal Cliff Angst?
Although Wall Street’s expectations were kept low due to fears that the still struggling economy would hurt profits, so far this earnings season has been a surprise with better-than-anticipated financials. As a result, the S&P 500 is back to 5-year highs.
Even with these results, chief executives at the nation’s largest banking and manufacturing firms have not abandoned their economic concerns.
They fear that the fiscal cliff’s “day of reckoning” might have only been postponed. As CNBC reported, the the battle over the nation’s statutory debt ceiling and higher taxes could derail the economy’s recovery, a view shared by Fitch. The credit ratings firm said last Tuesday that the U.S. faces a “material risk” of losing its triple-A status if the August 2011 debt ceiling crisis is repeated. Congress’ resolution of the tax hikes and spending cuts known as the fiscal cliff at the end of December did little to convince Fitch’s head of sovereign ratings, David Riley, that the pressure on the country’s rating was decreasing. He warned that another debt ceiling dispute would weaken confidence in Washington, reported Reuters.
So far, several CEOs have kept their 2013 outlooks…