Snowballing Interest Costs Could Lead to Avalanche

Blog Post
Thursday, January 06, 2011

A recent Congressional Budget Office report warns that interest payments on the national debt could explode over the next decade.

Dropping rates over the past two years resulted in declining interest payments as a percentage of GDP. Continued federal borrowing, economic recovery and rising rates, however, could leave the government facing interest payments totaling nearly $800 billion by 2020.

External links:CBO: Federal Debt and Interest Costs