Thursday, February 17, 2022

As interest rates rise, could the federal government "lock in" low interest on it's 30 trillion dollars of past debt?

Interest rates need to rise to cool the inflating asset and housing markets. Problem is, it could make the 30 trillion dollar federal debt more expensive to maintain. The government might need to cut back on needed services as it's interest bill on the debt goes up.

Maybe they should allow the government to "lock in" it's low interest rates on past debt the way a lot of homeowners are allowed to do. If interest rates were low, when the debt was incurred, that rate can be "locked in" permanently. Use new money from Federal Reserve to allow the government to lock in low interest on, at least, past debt.

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