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