Soaring US Debt Has Potential to Replay UKs 2022 Market Shock, CBO Warns
Yahoo Finance - In 2022, former U.K. Prime Minister Liz Truss announced radical economic measures, including deep tax cuts and billions of pounds of spending even as surging government debt called for fiscal prudence. The result was market chaos, with the British pound (GBP) crashing to record lows against the U.S. dollar (USD) and the collapse of Truss' government, the shortest in the country's history.
Now, the U.S. faces a similar risk if the government continues to ignore mounting debt concerns, according to Phillip Swagel, director of the Congressional Budget Office (CBO).