US Interest Burden Hits 28-Year High; IMF warnings; typ överskottsmålet
Treasury’s 2024 interest bill exceeded US spending on defense
The climb reflects a historically big fiscal gap, higher rates
The Treasury spent $882 billion on net interest payments
The cost was the equivalent of 3.06% as a share of gross domestic product, the highest ratio since 1996.
The Fed’s short-term benchmark rate averaged less than 0.75% over the decade through 2019; policymakers in September projected the rate would settle around 2.9% in time.
Bloomberg 19 October 2024
IMF urges debt reduction as finance chiefs meet in Washington
Even before global finance chiefs fly into Washington over the next few days, they’ve been urged in advance by the International Monetary Fund to tighten their belts.
The fund, whose annual meetings
begin on Monday
Managing Director Kristalina Georgieva, in a speech on Thursday, stressed how that mountain of borrowing is weighing on the world.
“Our forecasts point to an unforgiving combination of low growth and high debt — a difficult future,” she said.
“Governments must work to reduce debt and rebuild buffers for the next shock — which will surely come, and maybe sooner than we expect.”
Some finance ministers may get further reminders even before the week is over.
Bloomberg 19 October 2024
Tillbaka till Wall Street och Stockholm 19-20 oktober 2024
https://englundmacro.blogspot.com/2024/10/wall-street-och-stockholm-19-20-oktober.html
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