Mike Wilson: Has the U.S. Government Hit a Fiscal Wall?

This podcast episode examines the potential impact of government fiscal policy on financial markets. While avoiding a government shutdown is positive for the equity markets, concerns arise about fiscal discipline and its consequences for bond markets. The significant increase in the fiscal deficit over the past year, which has stimulated economic growth, now raises challenges as the U.S. Treasury prepares to issue substantial new debt. This conflict between markets and policy, particularly in terms of fiscal discipline and funding, may lead to higher rates or smaller budget deficits, both of which are potentially negative for stocks in the short term.