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The biggest threat to the economic outlook is a credit squeeze that has not finished filtering through the financial system, a senior official at Fidelity Investments told a European equities conference on Wednesday.

The biggest threat to the economic outlook is a credit squeeze that has not finished filtering through the financial system, a senior official at Fidelity Investments told a European equities conference on Wednesday.

The bank's head of U.S. equity trading strategy, Stuart Kaiser, said institutional investors view big tech companies, which generally have strong balance sheets and low debt, as a shield against a credit squeeze.

Gregory Daco, chief economist at the consulting firm EY-Parthenon, said he thinks a significant credit squeeze would have “slightly more’’ of an economic impact than the quarter-point rate hike the Fed announced Wednesday.

But then, facing huge losses as the global credit squeeze hit hard, it was bailed out by the British government and reined in its ambitions.