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

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.


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