Bloomberg News reported on Nov. 7 its analysis that the estimate of yearly interest payments on the U.S. federal debt went over $1 trillion, as of the end of October. The annualized level of interest payments has doubled since the end of March 2022.
The actual amount of interest on the federal debt in the fiscal year 2023, ending Sept. 30, was $880 billion—$165 billion higher than the previous fiscal year 2022. And the rise in the national interest bill to match the national military and “defense” spending bill, and soon to exceed it, is really only just getting started. The average interest rate on federal debt outstanding is still only about 2.65%. “There will be further increases to Treasury coupon auctions and T-bills outstanding,” said Bloomberg Intelligence analysts, in a note. “Besides deficits of over $2 trillion [per year] in the foreseeable future, climbing maturities following the increase of issuance from March 2020 will also need to be financed.”
