U.S. Debt Reaches a Record $36 Trillion: Implications for the Economy and Investors

... financial markets worldwide. Inflationary Pressures Financing debt and economic stimulus programs with borrowed funds could fuel inflation. As debt accumulates and interest rates rise, inflation expectations may intensify. Should inflation continue upward,... ... weaken, leading to exchange rate volatility. For Europe, a weaker dollar could mean both opportunities and challenges. European exporters might find U.S. markets more attractive as American consumers’ purchasing power declines. Conversely, European economies with strong dollar reserves could see reduced asset value, pushing them to diversify ...

Modified: 11/15/2024
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