The Congressional Budget Office on Monday revealed that the cost of payments on the federal debt soared 41 percent in the first six months of the fiscal year thanks to higher interest rates — driving the deficit up to $1.1 trillion over the period.

Under President Biden, massive spending has fueled not only high deficits but also inflation. The Federal Reserve Board has pursued an aggressive rate-increasing campaign to try and tame inflation, but one of the risks was always that this would further exacerbate the nation’s fiscal problems by adding to the cost of interest payments on the debt. And there is now evidence this is exactly what’s happening.

Poster Comment:

The federal debt turns over every 5 years. This means that even if interest rates do not go higher, a lot of old debt will be renewed at a higher rate which will push deficits higher.