The global bond market remains unable to fully absorb the financial challenges facing the world’s largest economy, Nobel Prize-winning economist Joseph Stiglitz told CNBC.
New York — Stiglitz said a clear signal of market concern is visible in expected real interest rates over the next decade, which have climbed from 2% to about 2.5%. “It’s a real indicator that markets don’t believe things are being managed well,” he noted.
The economist also warned that U.S. fiscal conditions are likely to deteriorate further, as companies find ways to bypass tariffs imposed under President Donald Trump. Once that happens, Stiglitz argued, tariff revenues — touted by Trump as a tool to fund the deficit — will fall short of expectations.
Analysts say Stiglitz’s comments highlight growing unease over America’s debt trajectory and the potential strain on global markets from prolonged fiscal uncertainty.
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