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FinanceFortune2h ago

Treasury yields are already blowing up the CBO’s long-term forecasts, and experts who previously downplayed U.S. debt fears are now starting to worry

"If interest begets debt, and debt begets interest, eventually debt will spin out of control. A fiscal crisis, once unthinkable, is now a distinct possibility."

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AI SUMMARY

# Treasury Yields Threaten U.S. Fiscal Outlook Rising Treasury yields are already invalidating the Congressional Budget Office's long-term debt projections, creating a self-reinforcing cycle where higher borrowing costs increase deficits and require more debt issuance. Previously skeptical economists are now warning of a potential fiscal crisis as the U.S. debt spiral accelerates, signaling increased risk for bond investors and potential long-term pressure on equity valuations.

Content sourced from Fortune. Not financial advice.