America’s fiscal health and economic strength are closely linked. Putting our nation on a sustainable fiscal path creates a positive environment for economic growth. With a strong fiscal foundation, the nation will have increased access to capital, more resources for future public and private investments, improved consumer and business confidence, and a stronger safety net.
However, if we fail to act, the opposite is also true. If our long-term fiscal challenges remain unaddressed, our economic environment weakens as confidence suffers, access to capital is reduced, interest costs crowd out key investments in our future and the conditions for growth deteriorate — all harming the prospects for the next generation.
Below is a selection of charts providing an overview of the U.S. economic outlook.
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Further Reading
The Fed Reduced the Short-Term Rate, but Interest Costs Remain High
High interest rates on U.S. Treasury securities increase the federal government’s borrowing costs.
How Does Inflation Affect the Federal Budget?
Rising inflation usually prompts higher interest rates, which in turn boost interest paid on the federal debt and thereby increase annual deficits.
What Are Interest Costs on the National Debt?
Interest costs are on track to become the largest category of spending in the federal budget.