Stephen Jen Quoted in Bloomberg: “US May Need ‘Truss Moment’ to Cut Deficit, Market Veteran Says”
By Liz Capo McCormick, Bloomberg, May 14, 2025
In a recent Bloomberg article, concerns over the U.S. fiscal trajectory take center stage as analysts warn that market forces may eventually compel decisive action. The piece compares the U.S. situation to the UK’s fiscal crisis under former Prime Minister Liz Truss, suggesting that similar market pressures could be necessary to prompt meaningful fiscal tightening.
Stephen Jen, CEO of Eurizon SLJ Capital, expresses caution about the current outlook while acknowledging the potential need for a forced policy shift:
“I’m not giving up completely,” Jen said. “But I’m conceding that we don’t seem to be moving in the right direction and I’m fearful of what may happen. It may be necessary to have a repeat of what happened to Liz Truss with the US bond market forcing them, actually sending yields close to or breaching 5%, to force everyone to do the right thing.”
Jen’s remarks reflect the possibility that sustained market pressure could act as a catalyst for fiscal reform, particularly if U.S. Treasury yields approach critical levels.
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