Surging U.S. Debt Raises Concerns About How Long Dollar Demand Can Prevent A Future Treasury Shock

The U.S. is facing debt pressures similar to the U.K. and France as political limits restrict action on taxes, spending, and borrowing. Treasury demand has prevented a market shock so far, but rising yields and a deficit above 7% highlight growing fiscal risk. The dollar’s reserve status still supports U.S. borrowing, though global concerns are beginning to challenge that advantage.