Archive · 5 Sep 2025
Stiglitz Warns Markets Underestimate US Fiscal Risks
Joseph Stiglitz, a top economist, believes US markets aren't fully considering America's financial challenges.
He suggests investors are overlooking the impact of tariffs and rising interest rates.
Another expert, Jason Furman, explained that policies like tax cuts and tariffs have resulted in significant budget deficits.
These deficits could lead to higher costs for things like home loans and make it harder for businesses to invest.
Stiglitz also criticized the US-EU trade agreement, claiming that the EU was at a disadvantage.
Joseph Stiglitz warned that US markets may be underestimating fiscal risks.
Long-term US borrowing costs eased after touching multi-year highs.
Stiglitz criticized the market for not fully reflecting the impact of tariffs.
Jason Furman said the Trump administration effectively locked in high deficits.
Stiglitz criticized the US-EU trade agreement, saying Brussels was disadvantaged.
- Who
- Joseph Stiglitz, Nobel Prize-winning economist, and Jason Furman, former chair of the Council of Economic Advisers.
- What
- Markets may be underestimating the scale of US fiscal challenges.
- When
- Recent days.
- Where
- Italy at the Ambrosetti forum, and within the US.
- Why
- Economists believe markets are not fully accounting for fiscal risks, including the impact of tariffs and the effects of high deficits on economic conditions.
- Economist
- Joseph Stiglitz
- Event
- Ambrosetti forum
- US 30-year treasury peak
- 5%
- Projected real interest rates increase
- 2% to 2.5%
- Former Chair of CEA
- Jason Furman