Crescat warns of new inflation regime

Crescat Capital has published analysis warning of persistent inflation driven by US fiscal imbalances.

The firm notes net interest outlays rose from 1.4% to 3.1% of GDP since 2020. The Congressional Budget Office projects this ratio reaching 4.6% by 2036.

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Illustration of a fiscal expert warning about rising government debt reaching 43.6% of GDP due to additional borrowing.
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CFA warns of additional borrowing that would raise debt to 43.6% of GDP

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The Autonomous Fiscal Council warned Tuesday about the effects of the additional borrowing project for US$6.200 million. Gross debt would reach up to 43.6% of GDP in 2026.

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