Bank of Canada’s Macklem Says U.S. Fiscal Policy Unsustainable

A foreign central bank governor publicly labeling U.S. fiscal policy unsustainable is a notable escalation in tone, even without specifics. It matters because sovereign debt trajectory is increasingly part of the macro backdrop for risk assets, including crypto and tokenized RWAs, which trade against the same rate and liquidity conditions. Macklem's framing — that this is a question of political will rather than economics — implicitly puts the burden on U.S. lawmakers, not markets. Whether other officials echo this language, and whether it shifts how sovereign risk is priced, is the open question.