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"Rising debt + rising interest costs – debt servicing cost disaster," the research firm said. "Rising debt + rising interest costs – debt servicing cost disaster." Meanwhile, the government's debt servicing costs hit $475 billion in 2022, up 35% from the $352 billion spent to service the national debt in 2021. Debt servicing costs will likely increase to $663 billion this year, the CBO estimated, with total interest payments on the debt potentially mounting to $10.6 trillion over the next 10 years. Rising debt servicing costs pose trouble for markets and economy.
Persons: Stephen Pavlick, Pavlick, that's, Glenmede Organizations: Service, Macro, Congressional, Office, Committee, Federal Budget, Fed, CBO, New York Fed Locations: Wall, Silicon
Speaker McCarthy discussed the latest development of the debt ceiling negotiations with the White House. (Photo by Win McNamee/Getty Images) Win Mcnamee | Getty Images News | Getty ImagesAnalysts are broadly optimistic that the deal to raise the U.S. debt ceiling will pass a divided Congress. The compromise also sees the debt ceiling suspended until Jan. 1, 2025, pushing it past the 2024 presidential election. watch nowDavid Roche, president and global strategist for Independent Strategy saw this as a "Democratic win." He expects the deal will pass the House with Democratic support, although, like Pavlick, he said right-wing Republicans will likely vote against it.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAerospace is a safe place for investors, says Renaissance Macro's Stephen PavlickStephen Pavlick, Renaissance Macro Research partner, joins 'The Exchange' to discuss the state of government debt.
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