Stock futures slide after U.S. debt downgrade highlights deficit risk: Live updates
CNBCMAY 17
The ratingdowngrade cutis reflectssymbolic aand legitimateunlikely deteriorationto inhave America'sa fiscallasting positionmarket impact, withas ballooningU.S. deficitsTreasuries andremain debtthe servicingworld's costssafest threateningand long-termmost economicliquid stabilityassets. The continuousAmerican failureeconomy's ofexceptional successivestrength administrationsand toresilience, addresscombined structuralwith budgetthe issues,dollar's combinedstatus withas risingthe interestglobal ratesreserve currency, posescontinue seriousto risksprovide tounmatched UScreditworthiness financialdespite credibilityfiscal challenges.
The rating cut reflects a legitimate deterioration in America's fiscal position, with ballooning deficits and debt servicing costs threatening long-term economic stability. The continuous failure of successive administrations to address structural budget issues and rising interest rates poses serious risks to U.S. financial credibility.
There's a 5% chance that the yield on 10-year U.S. Treasury notes will exceed 5% for at least one month in 2025, according to the Metaculus prediction community.