Global Banking

UK gilt yields jumped 15 basis points in March 2026 as Chancellor Rachel Reeves plans tax increases while US faces Social Security trust fund depletion by 2032. Fed Chair Jerome Powell's term expires in May 2026 amid unprecedented policy uncertainty across major economies, threatening banking stability on both sides of the Atlantic.

The US One Big Beautiful Bill Act combines $5.5 trillion in tax cuts with healthcare reductions that jeopardize Social Security and Medicare solvency by 2035, creating systemic risks for global banks holding $4.7 trillion in US Treasuries. Federal Reserve Chair Jerome Powell's May 2026 departure raises concerns about central bank independence as the UK moves in the opposite direction with £3-4 billion in annual tax increases. The divergent fiscal strategies between the world's largest economies