Investor concerns over a swelling government debt load were soothed last week. But some experts say the US isn’t out of the woods yet.
Goldman Sachs spoke to three top economic experts — Ray Dalio, Ken Rogoff, and Niall Ferguson — about rising debt levels in the US. All three said they were worried about an impending debt crisis, particularly when considering the effects of President Donald Trump’s GOP tax and spending bill, which has been estimated to add trillions to the budget deficit over the next decade.
That reflects a slightly more pessimistic view than the market. After a scare last month, demand for long-dated government bonds was strong this week. It was a sign that investors are feeling more comfortable about the fiscal situation in the US, after showing nerves last month after Moody’s downgraded US debt and Trump’s tax bill began making its way through Congress.
Here are the top points each…
