US Debt Interest Will Reach $223 Billion This Year

February 5, 2014 Share Print 0

The Congressional Budget Office projects that interest will be $233 billion this year, or 1.3% as a share of the economy.

By 2024, it will reach $880 billion, or 3.3% of GDP. That means interest will account for the lion’s share of the $1.1 trillion deficit projected for that year and will come close to what will be spent on Medicare.
Interest costs will jump for two reasons. The first is the improving economy, which is expected to push what have been historically low interest rates to higher, more typical levels.
The second reason is that the underlying debt will remain very large and continue to grow.

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.