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McNabb: "Uncertainty is the enemy of recovery"

April 29, 2013

Bill McNabb, Vanguard's chairman and CEO, believes that policy uncertainty is the economic issue of our generation, and is speaking out on behalf of clients and investors.

Bill McNabbIn an opinion piece for The Wall Street Journal, Mr. McNabb asserted that the lack of a clear, long-term solution for the U.S. debt situation has hampered U.S. economic growth. He points to disappointing first-quarter 2013 GDP growth of 2.5%, compared with a forecast of 3.2%. Mr. McNabb also cites Vanguard estimates that policy uncertainty cost the country more than 1 million potential new jobs over the past two years.

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"Investor anxiety is a critical component in all of this," Mr. McNabb said in his essay. "We'd be foolish to take comfort in the strength of recent stock-market performance. Until the U.S. debt issue is resolved for the long term, market gains and losses will be built on an unstable foundation of promises that cannot be kept."

He believes that "a comprehensive, long-term, binding plan that brings the budget into balance over a reasonable time frame is essential" to put America on a path toward sustainable economic recovery.

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