JPM's Michele: Clients Love US Governance, Rule of Law

The transcript discusses the implications of potential downgrades on the US economy, focusing on Fitch's actions and the challenges the US faces in aligning its fiscal deficits and debt-to-GDP ratio with other AAA-rated sovereigns. It highlights the US's fiscal challenges compared to other countries and touches on governance issues. Despite these challenges, the US markets remain attractive to clients due to the rule of law and transparency.

What was the main reason Fitch put the US on watch in May?

• Due to fiscal deficits and debt concerns

• Because of governance issues

• Due to immediate fiscal improvements

• To align with other AAA-rated countries

How does the US's debt to GDP ratio compare to the median of other AAA-rated sovereigns?

• It is significantly lower

• It is slightly higher

• It is about the same

• It is significantly higher

What is the median fiscal deficit of the other nine AAA-rated sovereigns?

• Minus six to minus seven percent

• Zero percent

• Thirty-nine percent

• One hundred twenty percent

Why do many clients still favor US markets despite fiscal challenges?

• Due to immediate fiscal improvements

• Because of low debt to GDP ratio

• Because of the rule of law and transparency

• Due to high fiscal deficits

What aspect of the US is not directly addressed in the fiscal comparison?

• Economic growth

• Governance

• Fiscal deficits

• Debt to GDP ratio