(Bloomberg) -- Goldman Sachs Group Inc. President John Waldron said the US government should not be lulled into thinking that there’s insatiable appetite for its debt.

“There’s no evidence we cannot just keep going, but those of us who have been watching this for a long time are worried this is an unsustainable pace,” Waldron said in a Bloomberg Television interview. “We need to show more discipline in the system should the US continue to be a great place to invest.”

The Wall Street giant’s long-time No. 2 reiterated one of his chief concerns — that complacency around indiscriminate borrowing relies on the assumption that the US will continue to enjoy the reserve currency status, which may not always be the case. While there is a need to stimulate some parts of the economy from a fiscal standpoint, Republicans and Democrats need to find a way to create more discipline in fiscal spending, Waldron said.  

Read More: Goldman’s Waldron Sounds Alarm Over LDI-Like Jolt to US Markets

The banker has previously cautioned that the confluence of a political crisis and mounting leverage in the Treasury system could spark a severe event in financial markets. As investors turn their attention the elections later this year, the key issues that they would pay attention to are likely around taxation, regulation and US policy on China, he said.

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