"The Little-Known Fact That Will Make the National Debt Even Harder to Tackle" Article in E21
Dec 17, 2018
Summary: The federal government is pursuing an irresponsible fiscal policy. Our country’s massive deficits fuel a continuing increase in our federal debt, and the cost to service this debt continues to mount.
In recent history, especially since the global financial crisis and the Great Recession, the interest earned on Federal Reserve assets has been used to service a substantial portion of our debt servicing costs. However, this situation is changing, and future Fed contributions will be lessening at the same time debt servicing costs are rising. In this article, authors Dennis W. Jansen and Thomas R. Saving describe the relationship between the Fed and the national debt interest payments since the Great Recession, and where we are headed into the future.
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