UBS considered the "bazooka" of the United States Treasury to be more powerful than the debt vigilantes, at a time when US public debt surpassed 40 trillion dollars for the first time. This position emerges in the context of growing concerns about US debt sustainability.
The rapid increase in US debt service has been worrying financial analysts. This trend reflects the accumulation of charges associated with paying interest on the country's public debt.
The Swiss bank's specialist anticipates that the United States will "fully commit" to controlling the yield curve as a way to address the challenges posed by the high level of indebtedness. This strategy would be used to manage the financial impact of increasing debt.
