Fed Rate-Hikes Will Add Trillions To National Debt

Federal Reserve rate hikes will add trillions to the national debt, according to an analysis by the Committee for a Responsible Federal Budget.

The Fed delivered another 75-basis point rate-hike during its September FOMC meeting this afternoon and made it clear that rates will be ‘higher for longer’ to fight persistently high inflation. According to the Committee for a Responsible Budget (CFRB), rate hikes will add another $2.1 trillion to the national debt over the next decade.

The debt current stands at $30.9 trillion.

Every increase in interest rate raises the federal government’s interest expense. So far in fiscal 2022, the US Treasury has forked out $471 billion just to fund the government’s interest payments. Source: ZeroHedge


Fair Use Notice:This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

1 thought on “Fed Rate-Hikes Will Add Trillions To National Debt”

  1. The Federal Reserve Bank was created to finance the US federal government. The US federal government is its biggest customer. Raising the borrowing rates means the US government will owe ‘the Fed’ even more.

    Reply

Leave a Comment