The interest burden on U.S. federal government debt has reached its highest level in 28 years.
According to Bloomberg News on the 19th (local time), the net interest expenses incurred by the U.S. federal government from October last year to September this year totaled $882 billion (approximately 1,200 trillion won).
The net interest expense as a percentage of Gross Domestic Product (GDP) was 3.06%, the highest in 28 years since 1996. During this period, the share of net interest expenses in federal revenue was 18%, reportedly surpassing the U.S. Department of Defense's defense spending.
Amid increased fiscal deficits and recent continued issuance of government bonds, the Federal Reserve's (Fed) interest rate hikes to combat inflation have been a major factor raising the federal government's interest burden. Additionally, fiscal expenditures increased due to COVID-19 pandemic-related spending and expanded social security support.
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