Question: How DO RISING interest rates in the US IMPACT the interest the US has to pay on it’s debts (Treasuries)? Are they not fixed debt payment obligations?
Answer: Interest rates in the US and the interest the US pays on its debts, like Treasuries, are closely connected, but it’s a bit more complex than fixed debt payment obligations. How It Works: Example: Key Takeaway: While existing debt payments are fixed, rising interest rates affect the cost of new debt. Over time, as […]