In just three years, interest payments on US federal debt are expected to double.
An estimated $1.6 trillion will be spent on interest in 2025, up from approximately $802 billion in 2022.
By the end of 2025, interest payments will have doubled from 2021 to 2025—a total of approximately $1.2 trillion—even if the Fed were to cut rates by 150 basis points.
For the first time in 27 years, federal interest expenses make up 36% of government tax revenue.
All of this is presuming that the Fed will still make a “soft landing.”
More than anyone else, the US government needs reduced rates.