The US government is paying increasingly more to borrow as long-term Treasury yields hover near their highest levels in two decades, raising concerns that Washington has fewer easy options to contain borrowing costs, according to a Reuters report.
The pressure comes from several fronts. The US is issuing large amounts of debt to finance persistent fiscal deficits, while inflation has been slow to return to the Federal Reserve’s target. At the same time, an artificial intelligence investment boom is keeping economic growth relatively resilient, limiting the scope for interest rates to fall even as parts of the economy, including housing and autos, weaken.
