PBOC adviser publicly questions sustainability of US fiscal trajectory

Huang Yiping, a senior adviser to the People's Bank of China, has raised concerns about the sustainability of the US's rapidly growing public debt. This warning comes amid rising international unease regarding America’s fiscal trajectory. Huang highlighted that the steady increase in US debt relative to GDP poses growing challenges. He noted that the current political climate in the US makes a return to fiscal discipline unlikely in the near term. This viewpoint was echoed by Jason Furman, a former senior US economic policymaker, who emphasized the troubling fiscal outlook and external consequences of budget adjustments. With US government debt projected to hit $38.4 trillion by 2025, the situation warrants closer scrutiny from policymakers worldwide, especially among countries with significant holdings of US assets.