Reported 6 months ago
Goldman Sachs updated its US fiscal outlook, projecting a concerning rise in the debt-to-GDP ratio and interest expenses. The bank predicts the debt-to-GDP ratio to reach 130% by 2034, up from the current 98%, with interest rates climbing to 2.3% by the same year. US interest rates have increased sharply following the Federal Reserve's tightening campaign, with real net interest exceeding 2% of GDP considered risky. The outlook highlights challenges in US fiscal sustainability due to rising debt and interest costs, despite little political momentum for deficit reduction.
Source: YAHOO