AXIOS: The U.S. Government's Interest Bill is Skyrocketing
Article by Neil Irwin in Axios
The U.S. government's fiscal outlook has become markedly worse in the last couple of months — not because of anything happening on Capitol Hill, but because of shifts in global bond markets.
Why it matters: An upward shift in long-term interest rates is putting the government on track to spend much more on interest payments in the coming years than was anticipated just a few months ago.
- If current rates stay high and fiscal policy matches current forecasts, the cost of servicing those debts will surpass defense spending in 2025 and top Medicare spending in 2026.
- In the current fiscal year, interest spending is on track to surpass $800 billion, more than double ......