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The United States’ Fiscal Policy in a Global Context
With continued high fiscal deficits likely for the foreseeable future, public debt in the United States is projected to rise faster and reach higher levels than in most other advanced economies. This outlook for large U.S. fiscal deficits and high and rising public debt, especially in the context of high interest rates, raises concerns about the long-term health of the U.S. economy. The prospect has drawn increasing investor attention in bond markets, contributing to increased volatility in U.S. Treasury yields over the past year. This matters greatly for the rest of the world too, since the health of the U.S. ... (full story)