U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021.
Managing the ballooning debt is more challenging now than when S&P stripped the United States of its AAA rating in 2011.
The deficit before interest payments was lower then, economic growth was weak but still higher than prevailing interest rates, and the Fed was buying boatloads of bonds.
Interest payments as a share of federal revenue, spending, and the economy are set to reach historically high levels early in the next decade.
It's not just the supply of debt that matters - demand to hold that debt is critical.
Persons:
Dado Ruvic, Fitch, Uncle Sam, Carter, Chris Marsh, Bonds, Phil Suttle, It's, Jamie McGeever, Kirsten Donovan
Organizations:
REUTERS, AAA, Fed, Carter Administration, Investors, Reuters, Treasury, CBO, Suttle, Thomson
Locations:
ORLANDO, Florida, Washington, United States, Foreign, China, Treasuries, U.S