Down Arrow Button Icon
Fortune • • business
Key Points:
- In fiscal year 2025, the U.S. government spent $1.22 trillion on interest payments, driven by higher long-term interest rates and inflation, though lower short-term rates partially offset the increase.
- For 2026, rising costs from the $38.4 trillion national debt will persist, with analysts expecting the Federal Reserve to hold rates steady rather than cut them significantly in the near term.
- The Congressional Budget Office (CBO) projects inflation to slow throughout 2026, potentially easing budget pressures, with the Core PCE Price Index forecasted to decline from 3.2% in Q1 to 2.5% by year-end.
- Uncertainty looms over tariff revenues, as the Supreme Court is
