Apr
27
Bond Vigilantes Lie In Wait for Trump’s Debt-Swelling Tax Plan
By-
Concerned about growing deficits? Watch these 4 market signals
-
Goldman Sachs says proposal released this week faces long road
The Trump administration’s tax plan — and its disregard for the effect it would have on the federal budget deficit — is certain to pique the interest of a long-dormant segment of bond investors.
So-called bond vigilantes, once feared for enforcing restraint on spendthrift governments, have struggled to flex their muscles in recent years as global central banks stepped in to buy a glut of sovereign debt. Now may be the time for a comeback, with the Federal Reserve talking about trimming its Treasury holdings while the administration’s tax plan could spur more borrowing to cover a shortfall (assuming the projected economic growth doesn’t materialize)…
Bond Vigilantes Lie In Wait for Trump’s Debt-Swelling Tax Plan
