Stephen Jen Quoted in Reuters: “Historic US Budget Alarm Replaces Tariff Anxiety”
Mike Dolan, Reuters, May 14, 2025
In a recent Reuters article, the spotlight moves from U.S. trade tensions to growing concerns over the country’s budgetary sustainability. As investors reassess the fiscal outlook, market sentiment is increasingly shaped by long-term debt challenges rather than short-term tariff disputes.
Stephen Jen, CEO of Eurizon SLJ Capital, highlights the significance of persistent long-term U.S. Treasury yields and their implications for fiscal credibility:
"Long-term US Treasury yields being stubbornly elevated suggests that investors no longer believe in the U.S. ability to bend the fiscal deficit curve. We share this concern."
Jen’s remarks underscore the potential risks if the U.S. is perceived as unable to manage its fiscal path, with broader implications for the dollar and global markets.
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