Top Asset Manager Warns U.S. Debt Rising Faster Than Growth, Urges Fiscal Discipline
Jim Millstein, co-chair of Guggenheim Securities, warns that the U.S. faces a looming fiscal crisis as government debt grows faster than the economy.
In an interview with Bloomberg, he noted the country is running a 7% GDP deficit, while economic growth lags at 2–3%, making the debt trajectory unsustainable. Millstein attributes rising 10-year Treasury yields to investor concerns over massive federal deficits and the growing supply of government bonds.
He urges fiscal consolidation—aligning revenue with spending—to avoid long-term financial instability, drawing parallels to the 1990s when similar pressures spurred deficit-reduction measures.
Clever Robot News Desk 29th May 2025
