CFO Slice

U.S. CFOs have been advised to prepare for persistently high borrowing costs and financial volatility in 2027, despite Democrats gaining control of both chambers of Congress in the midterm elections. EY-Parthenon executives have warned that rising government deficits, inflation uncertainty, strong capital demand, and political instability could sustain pressure on interest rates. Finance leaders are encouraged to stress-test investments, review debt maturities, diversify funding sources, and preserve balance-sheet flexibility. Political gridlock could also increase credit restrictions, short-term borrowing costs, and cash flow risks for government contractors. Meanwhile, growing political opposition to AI infrastructure and data center development could raise financing and regulatory costs, particularly amid concerns about electricity prices. Experts recommend applying conservative investment assumptions, prioritizing projects with measurable productivity gains, and accounting for infrastructure and workforce costs to maintain financial resilience and support sustainable growth.