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Interest payments on the national debt are exploding
Summary:
The federal government is spending more money on interest payments due to Federal Reserve rate hikes, with a record $213 billion paid in the last quarter of 2022. This is a $63 billion increase from the same period the previous year and nearly $30 billion more than the prior quarter. The Congressional Budget Office is expected to release their estimate on the increasing borrowing costs soon. The surge is a result of the Federal Reserve raising interest rates by 4.25% between March and December, with an additional quarter-point increase in February. Previously, borrowing was inexpensive for the government, but interest rates were not expected to remain low. This increase in borrowing costs is expected to be a heavy burden in the coming years.
#america #debt #economy
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