According to Bloomberg,
Five years after Federal Reserve Chairman Ben S. Bernanke dropped U.S. interest rates toward zero to end the worst economic crisis since the Great Depression, America’s financial markets have become the envy of the world.
From money-market rates to yields on government and company bonds to equity prices, financial conditions in the U.S. are healthier than before Lehman Brothers Holdings Inc. collapsed in 2008, even as growth falters in Asia and Europe. The U.S. now has the strongest economy among industrialized nations, which would be its highest rank since 2000, according to David Woo, the New York-based global head of interest rate and currency strategy at Bank of America Corp.
“Resilient is the word that comes to mind in regards to the U.S.,” Paul Montaquila, the fixed-income investment officer at BNP Paribas SA’s Bank of the West, which oversees $62 billion in assets, said in a telephone interview from San Ramon, California. The strength of the financial markets demonstrates “the U.S. is still the preferred market of choice for global investors and the most-important engine of growth.”
While the Fed’s decision to push borrowing costs to historical lows in December 2008 helped developing economies recover more quickly as the U.S. housing bust crippled Americans’ ability to spend, investors are now showing greater conviction that the nation will underpin growth globally.