About Federal government current expenditures: Interest payments
The Fed cannot raise the FEDFUNDS rate enoughA higher FEDFUNDS rate (currently around 0%) causes higher rates on treasury yields.
Here is our "effective rate" (ER) we pay on the national debt. Currently around 1.9% and 22% of tax receipts go to paying this interest.
If ER goes above around 3%, interest payments are around 26% of US federal re
Percent of Revenue for Interest Payments vs FEDFUNDs DifferenceThis chart shows the difference between the percent of federal tax receipts used to pay interest on the national debt (currently around 20% of tax receipts) and the FEDFUNDS rate. This difference has been growing through the years as the debt grows larger and people are less willing to buy treasurie
Percent of Revenue for Interest Payments vs FEDFUNDs RatioThis chart attempts to show the ratio between the percent of federal tax receipts used to pay interest on the national debt (currently around 20% of tax receipts) and the FEDFUNDS rate. This ratio has been growing through the years as the debt grows larger and people are less willing to buy treasuri
Interest Expense gets relief on Fiscal Policy PullbackA serious matter, as interest Expense is not about to absolve itself.
Amortized discount or premium on UST Bills, Notes, and Bonds is also included
within the monthly interest expense.
The Fiscal Year represents the total interest expense on the Debt Outstanding
for a given fiscal year.
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