U.S. federal interest payments surpassed $1 trillion annually in 2024, highlighting rising debt and fiscal sustainability concerns.
Steady growth in U.S. interest payments since the 1980s has accelerated dramatically since 2020 due to rising rates and pandemic borrowing.
Higher interest costs strain the federal budget, potentially limiting spending on infrastructure, healthcare, and education.
Ripple CTO David Schwartz, also known as JoelKatz, shared data showing record-high U.S. federal interest payments, which have now surpassed $1 trillion annually.
Probably nothing. https://t.co/G21IhCuNid
— David "JoelKatz" Schwartz (@JoelKatz) October 29, 2024
This surge reflects a significant change in the U.S. economy, driven by higher interest rates and increased national debt. This trend is raising concerns about fiscal sustainability and future federal spending.
Decades of Growth in Interest Payments
The cost of federal interest payments has grown steadily since the early 1980s, reflecting the increase in national debt. Measures to reduce inflation in the 1980s and 1990s also contributed to higher interest payments.
However, the growth rate was relativ…
The post Ripple CTO Highlights Record $1 Trillion U.S. Federal Interest Payments appeared first on Coin Edition.
