Investors Are Sending a Warning to Congress

Victoria Guida: “As Republicans haggled this week over a tax bill that would add trillions to federal deficits, the long-term cost of financing the national debt surged. That wasn’t a coincidence — it was a warning. And it was as gently as the bond market is going to warn the U.S. that the path of the national debt is a problem…”

“In conversations with investors this week, I heard a new level of focus on the sheer volume of debt that Washington is set to pump out and, in some cases, real concern about how it will play out in markets. It was a shift from the perennial elite conversation, where the consensus has generally been that the debt is a worry, but not an immediate one. … Congress is not known for heeding gentle warnings.”