- Sep 25, 2001
Higher short- and long-term Treasury rates mean that the federal government's borrowing costs will also rise.
with low interest rates, the US doesnt pay that much interest to service it's debt.
with rising interest rates, interest payments will take a larger % of federal revenue.
And the fed fund rate went from .25% to 2.5% this year (so far).
I predict the annual budget deficit will either rise or programs will be cut to service the rise in interest payments and/or increase in corporate taxes and the wealthy.
Lets see what Biden's proposal for 2023 is...