The US economy is inching towards a potential market meltdown, as warned by the Congressional Bureau Office. According to a new report, the rising US debt metrics are putting pressure on the US bond market, which could ultimately prove lethal for the nation’s credit rating.
Per CNN, the soaring debt metrics are suffocating the US economy, gradually causing the region to undergo a stark market meltdown. The region may soon experience a serious economic pitfall if its debt metrics are left untreated and rogue.
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Economic Meltdown to Engulf the US?
A recent report by CNN has stirred interest in whether the United States of America is slowly embracing its market demise.
According to the warning issued by the Congressional Bureau Office, the nation’s skyrocketing debt ratio may impact the US bond market, which could send yields pumping to new highs. This can result in the erosion of the USD, burdening the economy and causing it to fall like dominoes.
In an interview with the Financial Times, CBO director Phillip Swagel shared how US debt metrics are rising at an “unprecedented” level. Discussing this in detail, Swagel compared the current US market scenario with the iconic bond market mayhem that occurred in the UK.
“The danger, of course, is what the UK faced with former Prime Minister (Liz) Truss, where policymakers tried to take action, and then there’s a market reaction to that action… But as higher interest rates raise the cost of paying its creditors, which is on track to reach $1 trillion per year in 2026, bond markets could “snap back,” Swagel shared.
Swagel emphasized that if America continues to increase its debt ratio, the bond market will be the first to break down, repeating the UK’s economic pitfall.
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US Debt Shows No Signs of Stopping
With cautionary tales floating in the air, the US debt metrics are showing no signs of restriction or depreciation. If the numbers continue to rise, the American economy may soon undergo a serious market shutdown.
As of today, the US debt numbers have crossed $34 trillion. The recent data suggests that the US will continue to repeat the current pattern, adding another trillion to the data every 90–100 days.
If the nation continues to borrow more money, the US debt could soon breach the $57 trillion market, sending the economy spiraling out of control.