Intel stock spikes after report of possible US government stake
Investing.com -- The International Monetary Fund (IMF) stated on Thursday that the U.S. Treasury market remains orderly and U.S. government bonds continue to be liquid safe-haven assets, according to Reuters. This statement comes in a week when long-term U.S. government bond yields have seen a sharp rise, following a downgrade of the U.S. credit rating by Moody’s and discussions on a comprehensive tax package by Republicans.
The IMF is closely monitoring the tax plans being developed in Congress. The tax and spending bill, which was passed on Thursday by the Republican-controlled U.S. House of Representatives, is expected to add approximately $3.8 trillion to the federal government’s $36.2 trillion debt over the next ten years. This information is based on an assessment by the nonpartisan Congressional Budget Office.
Julie Kozack, the IMF’s director of communications, reassured reporters on Thursday that despite some volatility, the market functioning, including the U.S. Treasury market, has been orderly. Kozack stated that the IMF would evaluate the final bill once it has passed through the Senate and has been enacted.
Furthermore, Kozack mentioned that a recent trade breakthrough between the United States and China could potentially improve global economic growth prospects, despite ongoing uncertainty. The reduction in tariffs and easing of tensions may pose some upside risk to the IMF’s global growth forecast. However, she emphasized that the global outlook remains highly uncertain.
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