U.S. Debt Fluctuations Surge Amid AI-Driven Borrowing Growth and Fed Faces Fiscal Uncertainty

Bitget App

Trade smarter

Bitget

News

Markets

U.S. Debt Fluctuations Surge Amid AI-Driven Borrowing Growth and Fed Faces Fiscal Uncertainty

Bitget-RWA2025/11/13 11:56

By:Bitget-RWA

- U.S. Debt Volatility Index hits one-month high in November, reflecting market anxiety amid government shutdown resolution and fiscal risks. - AI infrastructure debt surges 112% to $25B in 2025, driven by tech giants’ $75B in bonds for GPU/cloud projects, raising overleveraging concerns. - Fed faces mixed signals: October job losses push December rate cut odds to 68%, while gold/silver rise 2-3% as investors seek safe havens amid fiscal/geopolitical risks. - Delayed economic data from shutdown complicates

The U.S. Debt Volatility Index reached its highest point in a month at the start of November, highlighting ongoing market unease even after the government averted a shutdown. Although Congress agreed on a funding deal to keep federal agencies running, investors remained cautious about larger fiscal threats, such as the rapid increase in AI infrastructure debt and weak economic indicators that could postpone interest rate reductions by the Federal Reserve.

U.S. Debt Fluctuations Surge Amid AI-Driven Borrowing Growth and Fed Faces Fiscal Uncertainty image 0

Gold and silver prices jumped in response to the uncertainty, with analysts

highlighting a vulnerable fiscal environment

as a major factor.

The shutdown, which persisted for more than a month, interrupted the release of vital economic statistics, leaving both policymakers and investors without a clear picture of economic conditions.

The U.S. Labor Department is now being pressed

to prioritize the release of November’s employment and inflation data to help guide the Fed’s December policy decisions. Since the last jobs report was published in September before the shutdown,

experts caution about information gaps

in labor market analysis, potentially complicating the central bank’s choices.

At the same time, the AI sector’s rapid growth is driving a sharp increase in data center borrowing, which has soared 112% year-over-year to $25 billion projected for 2025. This growth is fueled by large-scale projects needing advanced GPUs and cloud systems, with leading tech companies like

Meta

Oracle

, and Alphabet raising $75 billion in bonds and loans since September. Morgan Stanley

estimates that AI-related data center investments

will total $2.9 trillion between 2025 and 2028, with half of that requiring outside funding. Still, this surge in borrowing is raising alarms about excessive leverage, especially as AI equipment loses value quickly and speculative construction projects may not secure tenants.

The typical debt-to-EBITDA ratio

for U.S. data center firms has risen to 5.3 times, up from 3.7 times in 2023.

The Federal Reserve’s policy outlook remains uncertain due to conflicting economic signals.

Weak private-sector job numbers

reported for October 2025 increased the likelihood of a December rate cut to 68%, up from 62% before the data was released. The U.S. dollar weakened as markets anticipated looser monetary policy, causing the EUR/USD and GBP/USD exchange rates to climb. Meanwhile,

New York Fed President John Williams

indicated that the central bank would soon resume asset purchases to maintain sufficient reserves after ending quantitative tightening, a move that could affect long-term interest rates.

Gold advanced 2% to $4,079.78 per ounce, while silver gained nearly 3%, as investors sought safety amid fiscal and geopolitical worries. Ole Hansen from Saxo Bank observed that higher bond yields reflected “fiscal concerns” rather than inflation, a pattern that has benefited precious metals.

The Bank of Canada’s recent decision to lower rates

to 2.25%—despite internal disagreements over timing—also underscored the cautious stance of global central banks, as they weigh inflation risks against economic vulnerability.

Looking forward, markets remain divided over the dollar’s strength and the Fed’s next moves. Although reopening the government will restore the flow of economic data, delays in October’s jobs and inflation reports may hinder precise policy adjustments. Analysts caution that the combination of debt-fueled AI infrastructure expansion and shaky fiscal fundamentals could keep volatility elevated. For now, the rise in the Debt Volatility Index signals a market still wrestling with uncertainty—a clear indication that resolving the shutdown has not eased deeper worries about U.S. debt and economic stability.

---

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Grayscale files for IPO to list as "GRAY" on NYSE, signaling crypto sector's public market push amid regulatory clarity. - Dual-class structure grants DCG 10x voting power over public shares, maintaining control as a "controlled company." - Proceeds will acquire membership interests in Grayscale Operating LLC, not directly fund operations. - Projected $30-33B valuation faces scrutiny over DCG influence, despite post-government shutdown crypto market rebound. - Morgan Stanley-led underwriters highlight Wa

Bitget-RWA•2025/11/13 15:42

Bitcoin News Update: Grayscale Lists Publicly, While DCG Maintains Authority Through Dual-Class Share Structure

AB's Rocket Ship: Stablecoins, ETFs, and Optimism About the Fed Drive Ongoing Rally

- AB shares surged 30% driven by USD1 stablecoin integration and ETF expansion, boosting liquidity and user engagement. - Zero-fee USD1 transfers and cross-chain wallet upgrades enhanced AB's utility, linking ecosystem activity to token demand. - Fed rate-cut expectations and AB's 0.68 equity beta position it to benefit from dovish policy, despite Saba Capital's stake reduction. - AUM surpassed $869B in October 2025, with private markets targeting $90-100B by 2027, reinforcing growth potential amid digital

Bitget-RWA•2025/11/13 15:42

AB's Rocket Ship: Stablecoins, ETFs, and Optimism About the Fed Drive Ongoing Rally

Zero-Knowledge Startup Secures $9M Funding, Introduces Gamified Verification to Bridge Privacy and Compliance

- Zero-knowledge identity protocol Self raised $9M in seed funding led by Greenfield Capital and SoftBank's fund, alongside angel investors like Casey Neistat and Polygon's Sandeep Nailwal. - The startup launched a points program incentivizing on-chain identity verification using ZKPs and verifiable credentials, partnering with Google , Aave , and Velodrome to bridge privacy-compliance gaps. - By enabling biometric passport verification and Aadhaar integration without exposing sensitive data, Self aims to

Bitget-RWA•2025/11/13 15:26

Gavin Wood Supports Acurast’s Decentralized Computing Revolution Driven by Smartphones

- Acurast, a smartphone-based decentralized computing project, secured $11M in funding led by Ethereum co-founder Gavin Wood and others. - The platform launched its mainnet on November 17, aiming to transform 150,000 smartphones into secure compute nodes for confidential tasks. - By leveraging hardware-backed security and eliminating intermediaries, Acurast challenges traditional data centers while addressing privacy and environmental concerns. - Despite scalability challenges, the project's 494 million pr

Bitget-RWA•2025/11/13 15:26