Interest on US government debt just hit $1 trillion dollars. With $3.4 trillion in income so far in fiscal 2023, interest payment alone account for 29% of federal income.
Analyst Comment: This is one of the reasons the Fed cannot maintain high interest rates (federal funds rates) much longer. Federal debt is rolling over at far higher interest rates and soon interest payments will be the biggest budget item. As interest payments go higher, more debt will be taken on to help cover the shortfall which will then increase interest payments. This is the debt spiral, and we are being sucked in!