News summary
U.S. Treasury Secretary Yellen warned that high interest rates would make borrowing difficult and emphasized the need to increase fiscal revenue and control deficits.
Newsletter text
US Treasury Secretary Yellen hintedcurrentmegamillions: Long-term high interest rates may cause a sharp increase in U.S. debt financing costs
U.S. Treasury Secretary Yellen recently pointed out that in the face of a continued high interest rate trend, the United States 'ability to maintain borrowing demand has been tested. She emphasized that this situation requires that the focus of fiscal strategy should shift to measures such as tax increases to strengthen fiscal revenue to maintain the stability of debt and interest costs. Yellen specifically mentioned that interest payments on government debt as a proportion of GDP, adjusted for inflation, are expected to remain at 1 per cent over the next decade.currentmegamillions.3%. She said that although a specific upper limit has not been set, the tolerance for this rate is no more than 2%.