Economics
The Bond Market’s $1 Trillion Deficit Spiral Has No Political Fix
- Analysts see midterms as lose-lose outcome for debt investors
- Worst-case scenario for U.S. bond market could be GOP upset
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Democrats and Republicans have plenty at stake in the upcoming midterm elections. But it’s already looking like a no-win situation for the U.S. bond market.
If Democrats take the House, it raises the odds that congressional leaders will propose an infrastructure-spending bill similar in scope to President Donald Trump’s original trillion-dollar proposal. And if the GOP defies expectations and holds on in Congress, tax cut 2.0 becomes more likely. In either case, the result will be debt, debt and more debt.