During a press conference, President Trump’s comments hinted at a potential selective default on US debt that, if enacted, could have dire consequences for global financial stability, particularly affecting US Treasury yields. Although Kevin Hassett, an economic advisor, later clarified that Trump was referring to non-debt payments, the initial suggestion alarmed many economists and investors. The danger lies in undermining the dollar's status as the world's reserve currency, which could lead to higher yields on Treasuries, impacting trillions in global assets.
Trump's comments about possible selective default on US debt obligations highlighted a precarious economic stability, raising concerns over the potential impacts on global financial markets.
Economist Kevin Hassett clarified that Trump's remarks were misinterpreted, emphasizing that the President had referenced other payments, not the $36 trillion debt obligations.
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