UBS: There is no risk to the United States' ability to repay its debt

Zhitong
2025.07.03 12:03

UBS Global Wealth Management stated in a report that the United States' ability to repay its debt remains intact. UBS expects the U.S. House of Representatives to approve Trump's economic policy agenda, although the nonpartisan Congressional Budget Office estimates that the bill will increase national debt by $800 billion compared to the House's original version over the next decade. "However, we believe the U.S. still has the capacity to manage its debt," UBS stated. The report noted that the credibility of the Federal Reserve, the reserve status of the U.S. dollar, the depth and liquidity of the U.S. Treasury market, the Federal Reserve's balance sheet holdings, and bank capital regulations may all help to fill the deficit