Henry Paulson warned that U.S. authorities must have a contingency plan in place to prevent a potentially “brutal” collapse in demand for U.S. Treasury bonds.
Paulson emphasized that growing fiscal pressures and shifting global dynamics could weaken investor appetite for Treasuries, which have long been considered one of the safest assets in global markets.
He stressed the importance of preparing emergency measures to stabilize demand if market confidence deteriorates, as any sharp decline could have significant implications for interest rates, liquidity, and overall financial stability.