Rising interest rates means the cost of US debt will hit a new peak by 2025, Goldman Sachs says

Tue, 10/03/2023 - 15:30

us capitol government shutdown 2018 — Total interest payments on the US debt could amount to $10.6 trillion over the next decade, per one analysis.
Associated Press/Carolyn Kaster

The cost of servicing the US's pile of debt is on track to hit a new record in 2025, Goldman Sachs said.
That's due to higher interest rates pushing up borrowing costs for public and private debts.
Total interest payments on the US debt could amount to $10.6 trillion over the next decade, per one analysis.

The cost of financing the US debt is about to come more expensive than ever, according to Goldman Sachs.

Strategists pointed to the rising cost of borrowing over the last year, with the Federal Reserve having raised rates to 5.25%-5.5% to lower inflation. That's pushed up the interest expenses on the US's massive debt load – which is now on pace to surpass the last peak reached in the 1990s and notch a new record by 2025, the bank estimated.