Managed Fiscal Stabilization

Washington responds to rising Treasury yields and repeated public warnings by moving toward a partial fiscal consolidation package. The most likely benign path is not a grand bargain, but a mix of discretionary spending caps, tax enforcement, entitlement adjustments, and higher revenue measures that slows the debt trajectory without triggering a recession.

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.