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Moreover, this is another reason why the deficit surge is so dangerous. Because govt interest costs skyrocket, and then politicians decide its easier to force the Fed to lower interest rates than to cut spending or raise taxes. But this paralyzes the Fed and brings inflation.
23.7. klo 21.54
The president says that if the Fed lowered short term rates, interest expenses for the U.S. would fall by $1 trillion per year.
The U.S. spent $1.1 trillion on interest expenses in 2024, and so there's almost no way this claim is remotely true.
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