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I’m surprised they didn’t lower it given the attempts to politicize the fed and the firing of the BLS chief. Also this is quite a short term outlook. Tariffs ar
by impure 1y ago
I’m surprised they didn’t lower it given the attempts to politicize the fed and the firing of the BLS chief. Also this is quite a short term outlook. Tariffs are likely to cause a stagflationary scenario which could lower government revenue in the long term.
- wnissen 1y agoIt does make you wonder what would cause a downgrade. The debates over the debt ceiling have certainly brought the U.S. closer to default than I would ever have thought. It's true that the U.S. can never run out of dollars, so in once sense it's not possible for a bondholder not to get paid back. But the political environment, the potential unreliability of previously iron-clad data, economic disruption from tariffs, and behavior from the Federal Reserve, these all seem to make an unlikely event much more likely.