US downgrade to raise market risks, dampen growth: Manila

MANILA - The downgrade in the United States' credit rating may heighten current uncertainties in financial markets and slow the global economy, highlighting the need for an alternative global reserve currency and more policy coordination among global regulators, the Philippine Finance secretary said on Saturday.

'Unless the US addresses their fundamental issues, I think we may have entered an era of less predictable and less stable global financial markets,' Cesar Purisima said in a mobile text message to reporters. 'This resulting unease may in the short-term make investors more tentative and slow down the global economy.'

'Global regulators will have to be more coordinated in their actions and this heightens the need for a new framework to facilitate this coordination.' -- REUTERS

Source: Business Times Breaking News