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The International Monetary Fund leveled an unusually direct criticism at US policymakers Tuesday, saying the country’s recent standout performance among advanced economies was in part driven by an unsustainable fiscal policy. “The exceptional recent performance of the United States is certainly impressive and a major driver of global growth,” the IMF said in its annual World Economic Outlook. “But it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability.” Washington’s overspending, the report said, risks reigniting inflation and undermining long-term fiscal and financial stability around the world by ratcheting up global funding costs. Read more of our IMF Spring 2024 meeting coverage here.

😶IMF To USA: Stop It, Get Some Help..."IMF Steps Up Its Warning to US Over Spending and Ballooning Debt" "The International Monetary Fund leveled an unusually direct criticism at US policymakers Tuesday, saying the country’s recent standout performance among advanced economies was in part driven by an unsustainable fiscal policy. “The exceptional recent performance of the United States is certainly impressive and a major driver of global growth,” the IMF said in its annual World Economic Outlook. “But it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability.” ~ Bloomberg https://lnkd.in/g9KcrXRC

Record levels of government debt, geopolitical tensions that threaten to split the global trading system, and the likely persistence of weak productivity gains may saddle the world with a slow-growth future that stunts development in some countries even before it starts. Source: Reuters #LMDNews #TheBusinessJournal #TheLatestInBusiness #postpandemic #globaleconomy #ukrainwar https://lnkd.in/gvAZm265

Today we launched the first edition of the Global debt report

Fitch Ratings downgraded the United States' long-term foreign currency issuer default rating from AAA to AA+ due to expected fiscal deterioration over the next three years, erosion of governance, and a growing debt burden. The downgrade was triggered by repeated political standoffs over the debt limit, which eroded confidence in fiscal management. The agency also highlighted the rising general government deficit and warned of a possible mild recession in late 2023 and early 2024. The White House disagreed with the downgrade, emphasizing the strong economic recovery under President Biden. This is not the first time a rating agency has downgraded the U.S., as Standard & Poor's did so in 2011.

The Global Risks Midyear Update 2024 by MetLife Investment Management offers vital insights for institutional investors. The report highlights a resurgence of inflation in the U.S., a recovering manufacturing sector, and significant geopolitical risks, particularly in the Middle East. With upcoming elections in the U.S., France, and the U.K., policy shifts are also on the horizon. Find out more: https://lnkd.in/gPJXKUNV #InstitutionalInvesting #GlobalRisks #MetLifeInvestmentManagement

Since Covid, the financial media has been full of commentators flagging the danger of out-of-control government deficits and the risks the associated burgeoning supply of debt poses to sovereign bond markets. Yet remarkably, they have spent very little time looking at the demand for that debt because, in theory, supply isn't an issue if there are sufficient buyers. Unfortunately, at our September Macro Summit, one of our presenters explained that those demand dynamics have deteriorated dramatically, and finally, the story is being picked up by the financial media. The bottom line is that we face an ugly combination of ballooning debt supply and shrinking supply with profound implications for all markets. #bonds #bondmarket #treasuries https://lnkd.in/gtGFT2WA

Investing in U.S. domestic securities denominated in dollars during times of global uncertainty can be considered a prudent strategy for several reasons: https://lnkd.in/grk9q6Ut