The U.S. Treasury has issued approximately $25.4 trillion in Treasury bills over the past 12 months, bringing the total issuance to $36.6 trillion. This has increased the proportion of short-term debt to 69.4%, nearing historical highs. The reliance on short-term debt to finance long-term obligations means that public debt interest rates are closely aligned with federal fund rates. If inflation rises again, prompting the Federal Reserve to hike rates, interest costs could reach unprecedented levels, exacerbating the U.S. debt crisis.
U.S. Treasury Issues $25.4 Trillion in T-Bills, Debt Crisis Looms
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