A recent downgrade of the U.S.’s credit rating by independent agencies has sparked concerns about the country’s economic prospects, according to a report from the Bank of Singapore. Chief Economist Mansoor Mohi-uddin highlights these implications in his research paper: The deteriorating fiscal situation in the United States suggests long-term U.S. Treasury yields will increase over time, with the bank forecasting a 10-year yield exceeding 5.00% within the next year. Furthermore, this downgrade raises questions about the U.S. dollar’s status as a safe haven asset, suggesting its peak may be near, and possibly impacting the Fed’s future policy decisions. The report emphasizes that substantial U.S. deficits and inflation could compel the Federal Reserve to maintain higher interest rates for longer periods of time.