U.S. Treasury Secretary Janet Yellen has stressed the importance of managing U.S. borrowing needs amid higher long-term interest rates, emphasizing the need to boost revenue in budget negotiations. “We’ve raised the interest-rate forecast. That does make a difference. It makes it somewhat more challenging to keep deficits and interest expense under control,” Yellen told Bloomberg on Friday. The Treasury Secretary expressed concerns about real net interest exceeding 2% of GDP. Global investment bank Goldman Sachs projected it might reach 2.3% by 2034, citing rising rates since the Federal Reserve’s interest rate hikes starting in 2022. Yellen underscored the necessity of tax negotiations and revenue measures to control interest expenses.
US Treasury Secretary Yellen Warns of Challenges in Controlling Deficits and Interest Expense
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
