In the Market: French bond vigilantes have lessons for the US

- Bond vigilantes' violent reaction to spendthrift French politicians is an important reminder for the United States: the market will likely determine the tipping point for debt sustainability, and it will be hard to predict it.

One senior financial industry executive who has been alarmed about deficits for the past several months said the signal that debt had hit an inflection point may well come from the market. The Trump campaign did not respond to a request for comment. The former president has talked about cutting taxes but raising tariffs and reducing waste in the federal bureaucracy.A market flare-up can be problematic and have far-reaching consequences, especially if it is sustained. Investors expect the Fed, for example, to start cutting rates later this year.

"The market's in a good mood right now," Tipp said."Everyone's convinced that the Fed's rate is going to be going lower, and they want to lock in these yields for a long time." Tipp said such spreads used to be the other way round until the financial crisis of 2008, but flipped over the following decade as debt levels increased rapidly.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

US Dollar holds onto gains as French market turmoil continuesThe US Dollar (USD) trades broadly steady on Monday as risk aversion prevails in markets amid the French political uncertainty. President Emmanuel Macron’s decision to call for snap legislative elections and the possibility of a far-right-dominated
Fonte: FXStreetNews - 🏆 14. / 72 Consulte Mais informação »

French election worries rekindle market memories of UK budget routFrench election worries rekindle market memories of UK budget rout
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

The Fresh Market to move into old Dom's Kitchen & Market location in Chicago's Lincoln Park communityThe Fresh Market to move into old Dom's Kitchen & Market location in Lincoln Park
Fonte: cbschicago - 🏆 546. / 51 Consulte Mais informação »