Freeland’s economic update needs to be realistic and honest

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Freeland’s economic update needs to be realistic and honest
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The Hill Times

TORONTO—Sometime soon, Finance Minister Chrystia Freeland will have to present the government’s economic and fiscal outlook. This is a critical part of the budget process because, if done properly, it sets out the framework for policy choices in next year’s budget.

But there is a risk that the foreign buyers of U.S. federal debt may feel they hold enough. Japan—the largest foreign lender to the U.S.—has already cut back its holdings. The government bond rate matters in three ways: first, interest costs for businesses and households are closely linked to the rates needed to sell U.S. government bonds; second, any upward pressure on U.S.

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