All articles tagged with #federal borrowing
Warsh takes the helm as global bond markets push long-term yields higher, with the 30-year U.S. Treasury around 5.11% amid energy-price shocks, AI-driven capital demand, and large deficits; investors debate whether the Fed should stay hawkish to keep inflation expectations anchored or cut to ease borrowing costs, while Warsh's AI-disinflation thesis has yet to show in the data.
The US national debt has surpassed $32 trillion for the first time in history, just two weeks after President Biden signed legislation suspending the debt ceiling. The government has already spent $1.2 trillion more than it collected in the first eight months of the current fiscal year, and annual budget deficits of $1 trillion or more are expected in the foreseeable future. The recent passage of the costly Inflation Reduction Act, ongoing military aid to Ukraine, and the broad resistance in Congress to significant spending cuts are expected to push the annual budget deficit closer to $2 trillion in the coming years.