\n<\/p>\n
POLK COUNTY, IOWA \u2013 Senate Finance
\nCommittee member Chuck Grassley (R-Iowa) joined over a dozen of his colleagues
\nin urging the Congressional Budget Office (CBO) to complete a thorough
\nassessment of the impact higher interest rates will have on the federal debt.
\nThe senators express concern that higher inflation, caused by Democrats\u2019 $4.8
\ntrillion in additional deficit spending since January 2021, has led to interest
\nrate hikes that will cause interest payments on the federal debt to soar. <\/p>\n
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\u201cRapidly rising yields on U.S. Treasuries
\nhave further heightened concerns about the costs associated with servicing the
\nfederal debt. As a result of recent rapid growth in net interest costs on the
\nfederal debt, federal spending will increasingly be comprised of net interest
\nrather than legislative priorities, reducing lawmakers\u2019 ability to fund
\ncritical projects for taxpayers,\u201d the
\nsenators wrote.<\/b><\/p>\n
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In May, the CBO raised the 10-year
\ndeficit projection by $2.4 trillion \u2013 with $1.5 trillion of this projection
\nstemming from higher interest rate expectations. The CBO also noted that the
\nfederal debt is on a path to be higher as a percentage of GDP than at any other
\npoint in U.S. history.<\/p>\n
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Grassley and his colleagues ask the CBO
\nto identify what effects persistent inflation and higher interest rates will
\nhave on the middle class; reassess its inflationary and interest rate outlook,
\nwhich was previously released in May of this year; and explain the impact
\ncontinued negative GDP growth would have on the federal budget.<\/p>\n
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\u201cGiven the upcoming two-day meeting of
\nthe Federal Open Market Committee on November 1st and 2nd, at which it is
\nwidely expected that the Federal Reserve will raise interest rates by at least
\n75 basis points, please reply as soon as possible after November 2nd so that
\nlawmakers and the public can be equipped with the most accurate data possible
\nwhen making policy decisions,\u201d the
\nsenators concluded.<\/b><\/p>\n
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-30-<\/p>\n<\/p><\/div>\n<\/p><\/div>\n