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Climbing Rates And Surging Debt Spark Fiscal Crisis Concerns In The Bond Market

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In recent comments, Harris warned that if interest rates on the 10-year note edge toward 5% or climb to 6% and above, investors might shift their focus to U.S. government securities, leaving corporate and equity markets behind. He urged caution over a scenario in which the nation's debt increases by another $4 trillion, an action he feels would strain economic performance. Harris suggested that limited borrowing capacity could spark a serious financial dilemma. This could involve a default risk on government bonds if investor trust in the Fed wanes, especially if international financial centers announce they no longer commit to purchasing U.S. bonds. The prospect of such events casts uncertainty over future fiscal management. These observations arise amid rising debt and shifting investor views, prompting experts to reconsider current fiscal strategies.

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Economic sentiment lifts, stirring chatter over spending strategies as consumers embrace rising confidence until a mysterious forecast leaves them stunned.

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