U.S. Credit Rating Downgrade Impacts Economic Outlook, Says Bank of Singapore

According to BlockBeats, Mansoor Mohi-uddin, the Chief Economist at the Bank of Singapore, highlighted in a research report that the recent downgrade of the U.S. credit rating has significant implications for the country's economic outlook. Firstly, the deteriorating fiscal situation in the United States supports the view that long-term U.S. Treasury yields will rise over time. The bank continues to forecast that the 10-year U.S. Treasury yield will reach 5.00% within the next 12 months. Secondly, the threat to the safe-haven status of U.S. Treasuries underscores the bank's perspective that the U.S. dollar has peaked. Lastly, the substantial U.S. deficits and inflation may compel the Federal Reserve to maintain higher interest rates for an extended period.