4 December 2023
The U.S. faces fiscal difficulties with a rising national debt expected to reach 115% of GDP in a decade and concerns over who will buy the massive issuance of Treasuries. Despite rising Treasury yields and a credit rating downgrade, the U.S.’s economic strength and the dollar’s status as a reserve currency offer some investor confidence. However, there’s caution against complacency, with the UK gilt crisis serving as a warning of potential market reactions to fiscal instability.