Lepard states that the US government has felt the pinch of the Federal Reserve’s campaign to raise interest rates. Much of the federal debt is tied up in short-term maturities, which are currently subject to about 5.3% interest. This is a stark contrast to September 2021, when many of these securities were tied to significantly lower interest rates, ranging from just 10 to 30 basis points.<\/p>\n
He continues to say the US government’s reliance on the short-term bond market to underwrite most of its debt is compounding the issue. Gavekal Research\/Macrobond data indicates that the government will need to renew $6 trillion of maturing notes in 2023 and another $3 trillion in 2024.<\/p>\n
Ultimately, Lepard remarks that this assessment doesn’t consider the potential market influx of approximately $1.2 trillion of bonds and notes that the Fed may sell if it continues with Quantitative Tightening. Consequently, the deficit pressure could intensify with these looming interest costs and debt renewals.<\/p>\n The post How rising interest costs impact government finances<\/a> appeared first on CryptoSlate<\/a>,<\/p>\n","protected":false},"excerpt":{"rendered":" Quick Take According to the Founder of Equity Management Associates, Lawrence Lepard, in his ema q2 report, The escalating interest expense, rapidly nearing a run rate of $1 trillion, is a major cause of the expanding government deficit. These factors imply that the government’s interest payments are surpassing its expenditure on national defense, according to […]<\/p>\n","protected":false},"author":2,"featured_media":127118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-127117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/127117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=127117"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/127117\/revisions"}],"predecessor-version":[{"id":127119,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/127117\/revisions\/127119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/127118"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=127117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=127117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=127117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Interest](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/in.png\")