U.S. Economy and Debt Management

SOURCE www.breitbart.com
Treasury Secretary Janet Yellen discusses managing debt-to-GDP ratio with lower interest rates. President Biden's budget aims to keep interest costs at historical levels.

Key Points

  • Interest cost of debt is a crucial metric to measure its burden on the economy.
  • Managing debt-to-GDP ratio with lower interest rates is seen as feasible.

Pros

  • Lower interest rates may allow for a sustainable path with a higher debt-to-GDP ratio.
  • President Biden's budget plans to keep interest costs at historical levels.

Cons

  • Concerns about the high federal deficit not typically seen outside of recessions.