Insignia Consultants | Wall Street futures, dollar ease in wake of credit blow
Wall Street futures, dollar ease in wake of credit blow
SYDNEY, May 19 (Reuters) - Wall Street share futures slipped with the dollar on Monday and Treasury yields rose as concerns about erratic U.S. economic policies were underlined by Moody's downgrade of the country's credit rating.
Unease over the United States' $36 trillion of debt has also mounted as Republicans seek to approve a sweeping package of tax cuts, which some estimate could add $3 trillion to $5 trillion in new debt over the next decade.
U.S. Treasury Secretary Scott Bessent used television interviews on Sunday to dismiss the downgrade, while warning trade partners they would be hit with maximum tariffs if they did not offer deals in "good faith".
Bessent is off to a G7 meeting this week for more talks, while U.S. Vice President JD Vance and European Commission President Ursula von der Leyen met on Sunday to discuss trade.
"It remains to be seen whether the 10% reciprocal rate - excluding Canada and Mexico - will broadly remain, or will go up or down for some countries," said JPMorgan economist Michael Feroli, who estimates the current effective tariff of around 13% was equal to a tax rise worth 1.2% of GDP.
https://www.reuters.com/markets/global-markets-wrapup-1-2025-05-19/
