The US isn’t the only economy facing turbulence. France is careening toward a government collapse, as fiscal crisis and record-high debt spark investor jitters and a likely fifth change in prime minister within two years. Political deadlock and public backlash over spending cuts have pushed France’s borrowing costs higher than crisis-hit neighbors like Spain and Portugal—raising fears of broader market contagion.
Meanwhile, Japan’s Prime Minister Ishiba resigned after election defeats and scandals, ending a months-long struggle with intra-party rebellion and unpopular policies. As both countries face a power vacuum, markets remain on edge: uncertainty in two G7 nations could spill into global markets, limiting the upside of any US rate cuts.
