Goldman Sachs' Gutman Urges Governments to Cut Spending and Boost Growth Amid Rising Borrowing Costs
Anthony Gutman, co-CEO of Goldman Sachs International, emphasized the need for governments across Western economies to reduce spending and stimulate stronger economic growth in order to address surging borrowing costs. He highlighted recent volatility in U.S. Treasurys and French government bonds as evidence of broader fiscal challenges. Gutman noted that rising bond yields are driven by factors such as energy prices and labor market conditions, but stressed the importance of addressing fiscal deficits through structural reforms. The election cycle across Europe is adding to policy uncertainty, complicating efforts for governments to manage their budgets effectively. As Spain announced plans for a snap general election on November 29, Gutman warned that political instability could further hinder economic progress and increase borrowing costs.
Topics: bond yields economic growth elections fiscal deficits government spending