Possible scenario
Fiscal Rate Scare
−2.4%
Investors increasingly connect the Democratic sweep with larger deficits, higher corporate taxes, tougher regulation and a Fed that may have to keep policy restrictive. Treasury yields and inflation compensation rise, pressuring duration-sensitive equities and credit.
What it moves
- Finance−2.9%
- Technology−2.6%
- Riskier companies' borrowing costs
- Market volatility
Keeping an eye on this scenario?
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