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https://www.cnbc.com/quotes/US10Y
The US will be paying a trillion dollars a year in interest soon. Interest will replace discretionary spending.
Jobs report shock: American economy added a stunning 336,000 jobs in September
From CNN's Alicia Wallace, Elisabeth Buchwald, Nicole Goodkind and Krystal Hur
Updated 9:53 a.m. ET, October 6, 2023
Economists had forecast the US added 170,000 jobs last month and for the unemployment rate to inch back down to 3.7%.
While that's better for the economy than August's tepid figures, it's not exactly the cooling labor market Fed Chair Jerome Powell is looking for to keep inflation in check.
https://www.cnn.com/business/live-ne...ber/index.html
https://www.cnbc.com/quotes/US10Y
The US will be paying a trillion dollars a year in interest soon. Interest will replace discretionary spending.
https://www.cnn.com/2023/02/14/polit...ebt/index.html
Like many Americans, the federal government is s ing out a lot more money to cover interest payments on its debt after a series of Federal Reserve rate hikes over the past year.
The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022, up $63 billion from the same period a year earlier.
The fourth-quarter tab was also nearly $30 billion more than in the prior quarter, which is the largest quarterly increase on record, said Jerry Dwyer, an economics professor emeritus at Clemson University.
Borrowing costs are expected to become an increasingly heavy burden in coming years. The Congressional Budget Office is set to provide its latest estimate on Wednesday.
The surge is due mainly to the Federal Reserve raising interest rates by 4.25% between March and December. The central bank increased the rate another quarter point in February.
Until recently, it cost the federal government very little to issue debt to finance its operations.
“It was almost free money,” Dwyer said. “You could borrow a trillion dollars, and if you financed it with Treasury bills, you paid almost no interest. But interest rates weren’t going to stay there forever.”
The national debt is once again in the spotlight now that the US has hit its $31.4 trillion debt ceiling, forcing Congress to take action or risk a catastrophic default. The Treasury Department is taking extraordinary measures to allow the government to continue paying its bills in full and on time, which it expects to last at least until early June.
The e in interest payments also contributed to the federal government hitting the debt ceiling that much faster. And it adds to the pressure on Congress to raise taxes, cut spending or allow the government to borrow more to meet all its obligations.
Higher interest payment in coming years
Even if the Federal Reserve slows or stops raising rates this year, as many economists expect, the nation’s borrowing costs will continue to increase. That’s because as the existing debt matures, the government issues new debt with the higher prevailing interest rates.
The higher rates could increase the net interest cost on the national debt to about $9 trillion over the next decade, according to estimates by the Peter G. Peterson Foundation, a nonpartisan organization that seeks to raise awareness of America’s long-term fiscal challenges. That’s up from the record $8.1 trillion that the CBO projected in May 2022 and the $5.4 trillion it projected in July 2021.
By 2032, interest costs will triple to more than $3 billion per day and to at least $9,400 per household, on average, according to the foundation. They are on track to become the largest federal budget item, surpassing Social Security and Medicare by the middle of the century.
“Having rapidly growing interest makes it much more difficult for government to fund all the things that are important to our society,” said Michael Peterson, the foundation’s CEO.
Trump: $2 a gallon gas.
That squattin' Biden: $5 a gallon gas.
U.S. employers added a surprisingly strong 336,000 jobs in September in a sign of economic resilience
The unemployment rate was unchanged at 3.8%.
WASHINGTON — The nation’s employers added 336,000 jobs in September, an unexpectedly robust gain that suggests that many companies remain confident enough to keep hiring despite high interest rates and a hazy outlook for the economy.
Friday’s report from the Labor Department showed that hiring last month jumped from a 227,000 increase in August, which was revised sharply higher. July’s hiring was also healthier than initially estimated. The economy has now added a healthy average of 266,000 jobs a month in the past three months.
The unemployment rate was unchanged at 3.8%.
The job market has defied an array of threats this year, notably high inflation and the rapid series of Fed interest rate hikes that were intended to conquer it. Though the Fed’s hikes have made loans much costlier, steady job growth has helped fuel consumer spending and kept the economy growing.
The September hiring report comes at a time when the Fed is scrutinizing every piece of incoming economic data to decide whether it needs to raise its benchmark rate once more this year or instead just leave it elevated well into 2024.
https://www.politico.com/news/2023/1...eport-00120332
Man, Qhris should be looking for a job and see what it's really like to earn money.
When you lose an election to a fossil by 7 million votes -
an election you actually CHEATED at
and even tried a treasonous coup and FAILED there too…
i guess POLLS are what you spend your lives cheering for!
Daddy
I wouldn't touch a 10 year US Treasury with a 10-foot pole. Does anyone really trust this government to manage its finances in any way shape or form over the next 10-20 years?
Republicans will not raise taxes and Democrats will not cut social spending programs under any cir stances. Both parties will provide the military nearly blank checks.
That leaves one solution to dealing with the debt in the long-term -- simply printing money to pay off the interest and watching inflation skyrocket like it does in less developed countries that also can't manage their own finances.
It's the most predictable pending financial crisis in history.
I remember hearing this type of thing in the 80s, then the 90s, then the 00s, then the last decade, and here we are again.
I don’t know what you heard but we were running budget surpluses by the end of the 1990s. No reason to believe that’s happening in the foreseeable future.
We are where we are today because of what started under George W Bush…. Two wars, tax cuts we couldn’t afford, crazy spending on other things, etc.
lmao,,,do you democrats ever stop blaming the republicans?,,,,youre saying we are in the spot we are today because of a president that occupied the white house over 14 years ago,,,,,lmao We are were we are today because todays presidents are spending money like it grows on trees,,,,Obama added more to the national debt than all the presidents before him combined,,,then along came Trump and Biden who are gonna crush the record,,,,
I recall that lasted for a couple of years and was put in place because of your type of doomcasting. It did not last long particularly, a couple of years, compared to how long the alternative that is supposed to doom us has been going on.
How do you see things playing out then?
(while taking into consideration that the national debt is the highest ever, Debt-to-GDP ratio is WWII like yet we're not fighting a world war, a big percentage of our debt is very soon going to be refinanced at much higher rates, and we appear to have massive structural deficits despite a strong economy)
Took college courses in every main field
Beyond data tracking economics is a crapshoot
Not like your doomcasting.
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