Macroeconomics

Weekly Market Monitor

20 June 2025 | 3 minute read
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The Strategic Advisory Solutions Market Monitor features a thematic chart and highlights key economic events and data releases driving the past week’s market moves.

Chart of the Week: The Deficit Dilemma

As the US Congress works to pass a tax and spending package, many investors are expressing renewed concerns about the sustainability of US fiscal policy. Our colleagues in GIR expect that the deficit will continue to grow, reaching 7% of GDP in 2034. Given neither party has expressed a clear commitment to fiscal consolidation, concerns about the US’s fiscal trajectory may persist, which may lead to an expansion of risk premia and higher bond yields. We see potential opportunities in active duration management and ex-US safe-haven assets to hedge against the risks of debt sustainability issues.

Chart of the Week

Source: Goldman Sachs Global Investment Research and Goldman Sachs Asset Management. As of June 18, 2025. Chart shows the annual US fiscal deficit as a percentage of US GDP. “Fiscal deficit” refers to a situation where a government spends more money than it collects in revenue during a fiscal year. “GDP” refers to Gross Domestic Product. “Safe-haven” refers to investments that are expected to maintain or increase their value during times of economic uncertainty or market downturns. The economic and market forecasts presented herein are for informational purposes as of the date of this presentation. There can be no assurance that the forecasts will be achieved. For illustrative purposes only. “We” refers to Goldman Sachs Asset Management.

Download the full document, which includes the chart of the week and a summary of market returns and economic activity over the week. On pages 2 and 3, we further recap equity sector, size and style returns, global index returns, as well as rates and spread movements and a monthly snapshot of global equity valuations.

Weekly Market Monitor
Our weekly Market Monitor features a thematic chart and highlights key economic events and data releases driving the past week’s market moves.
weekly market monitor
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