Posted 3/27/2024, 9:50:00 PM
CBO Chief Cautions: Soaring US Debt Could Cause Market Upheaval Like Under Truss
- CBO director warns US could face "market shock" similar to what happened under UK's Liz Truss due to rising national debt
- Cites "unprecedented fiscal trajectory" and potential for modest changes to have outsized effects on interest rates
- Projects deficit will rise significantly as percentage of GDP over next 30 years due to rising interest costs and primary deficits
- Some experts cast doubt on alarm, pointing to improved deficit projections in recent years
- Analyst says US could see sharp bond yield rise like UK if future Treasury Secretary makes a "crazy announcement" that catches markets by surprise