Falling Rates Shave A Few Billion Off The Federal BudgetGene Koretz
Declining interest rates may not have helped consumers much, but they're helping the federal budget. Although the national debt now has hit $4 trillion, up about 10% in the past year, interest payments by the Treasury have risen a mere 3%and have been flat for six months. The Office of Management & Budget calculates that each percentage-point drop in rates helps reduce the deficit by $4 billion in the first year and $13 billion in the second.
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