The Cost of Financing U.S. Government Debt
July 22, 2025
The relatively short maturity structure of US government debt means that increases in interest rates translate rapidly into higher interest costs.
Debt and Deficits
The U.S. federal government has been habitually spending more money than it receives in taxes, running federal budget deficits every year but 5 since 1969. The federal debt, which is the accumulation of these deficits over time, can pose risks to the U.S. economy. But, in times of economic distress, a rising debt might be needed to buffer the economy. Our posts cover whether debt should be cause for concern; welfare spending and the federal budget; state and local finance; and the impact of COVID on public finance, among others.
July 22, 2025
The relatively short maturity structure of US government debt means that increases in interest rates translate rapidly into higher interest costs.
April 21, 2025
Have investor visas served countries as an important source of fiscal revenues and a way of encouraging inward investment?
March 27, 2025
What is the 10-year Treasury yield? What role does it play in the economy? What determines it? And what (if anything) can the Treasury do to affect it?
October 31, 2024
Public debt in the United States is projected to rise faster and reach higher levels than in most other advanced economies.
June 19, 2024
Interest payments on US government debt relative to GDP are expected to rise to levels not seen since 1940 contributing to the fiscal challenges the U.S. faces.
November 15, 2023
The debt is projected to reach levels beyond historical experience in the next 3 decades. The challenge is significant but manageable as a matter of economics.
June 12, 2023
Despite the high-stakes debt ceiling negotiations, U.S. debt relative to GDP is projected to keep growing over the next decade. What factors account for this projection and why does it matter?
May 24, 2023
The debt limit debate has cuts to Medicaid, SNAP and TANF on the table. The scope for savings in government spending is bound by their share of the budget.
May 11, 2023
The consequences of a failure to raise the debt ceiling are serious but difficult to quantify. Why does the U.S. have a debt ceiling, and what does it mean to raise it?