The Fed's Limitations on Addressing Government Debt Interest

Reported about 4 hours ago

The Fed cannot resolve the government's debt interest issues, as highlighted by StoneX's Jon Hilsenrath. While the administration aims to alleviate interest costs, lowering short-term rates could lead to higher long-term rates due to inflation concerns. The only sustainable solution lies in curbing the annual budget deficit, yet recent budget projections indicate an increase in the deficit, posing challenges for both governmental and market stability.

Source: YAHOO

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