Debate over potential US fiscal crisis due to rising deficits and interest rates

From Investing.com: 2024-11-15 08:59:00

Paul Tudor Jones warns of a fiscal crisis due to rising deficits and interest rates, fearing inflation and government insolvency. However, historical data shows a different story. Interest rates have risen in the past due to economic growth, not just debt. The current inflation surge is driven by stimulus, not organic growth. Rising debt hasn’t led to high rates or inflation. Global demand for US debt remains strong. Inflation risks are manageable, and debt rollovers are standard practice. The US is unlikely to face a fiscal crisis soon, with ample tools to manage debt sustainably. Interest rates are likely to stay low unless economic growth accelerates.



Read more at Investing.com: Debate Over Debt: Is the US Truly on the Brink of a Fiscal Crisis?