- Treasury yields recently spiked to multi‑year highs (30‑yr ~5.2%, 10‑yr ~4.7%), and even modestly higher long‑term rates would have outsized effects given today’s massive debt.
- If those yields persist, federal interest costs could jump from about $1T now to roughly $2.5T by 2036—eating up ~30% of revenues, becoming one of the biggest budget items, and translating to roughly $17,000 of interest cost per household.
- The Fed can try to cool rates, but experts say the real fix is bipartisan deficit reduction by the President and Congress — otherwise the U.S. risks a serious fiscal squeeze.
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