Recent Projections Show Higher Interest Rates than Expected Earlier This Year
CBO now expects interest rates over the next two years to be higher than previously anticipated, according to new data released on December 15.
Read MoreBad Governance Could Be Making Our Debt Problems Worse
Governance issues can harm the U.S. economy, decrease the country’s standing in financial markets, and impact interest costs and the nation’s fiscal stability.
Read MoreRecent Economic Projections Show Higher Short-Term Interest Rates
CBO now expects that 3-month interest rates will peak at around 5.3 percent this year and only fall to 3.2 percent by the end of 2025.
Read MoreHow Does Inflation Affect the Federal Budget?
Rising inflation usually prompts higher interest rates, which in turn boost interest paid on the federal debt and thereby increase annual deficits.
Read MoreHow the Lack of Action on the Debt Ceiling Can Hurt the Economy
Even though the government has never defaulted, the continued pattern of brinksmanship has negative consequences for our economy.
Read MoreHow Do Quantitative Easing and Tightening Affect the Federal Budget?
The Federal Reserve plays an important role in stabilizing the country’s economy.
Read MoreHealthcare Spending in the United States Remains High
Healthcare spending in the United States totaled 18.3 percent of gross domestic product (GDP) in 2021.
Read MoreHow Can Fiscal Policy Help Reduce Inflation?
Responsible fiscal policy can play an important complementary role to monetary policy in helping to moderate inflation.
Read MoreInterest Rates Are Climbing Higher Than Expected, Leading to Pressure on the Federal Budget
Interest rates on Treasury securities are rising faster than most economists anticipated earlier in the year, with potentially serious consequences for the nation’s fiscal position.
Read MoreThe Rising National Debt Drives Up Long-Term Interest Rates
Mounting federal debt can cause interest rates to rise significantly, according to a new report released by the American Enterprise Institute (AEI).
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