A mammoth spending program being debated by the US Senate this week will swell the country’s debt and threaten its financial standing, analysts warned.
Some 20 cents of every dollar taken in tax revenue is now allocated to debt servicing, and the One Big Beautiful Bill Act is forecast to grow the deficit by a further $3.3 trillion over a decade.
More than 90% of economists in a Financial Times survey said they were concerned about the haven status of dollar-denominated assets, in part because of the planned fiscal expansion.
Their worries are not without foundation: global investors have been forced to rethink their exposure to the dollar: The world’s dominant currency has suffered its worst first half of the year since 1973 — a result of declining trust in the US dollar, driven largely by the unpredictability of US President Donald Trump’s trade wars.
