Interest Payments Rising Fast On US $33.6 Trillion Debt Load, Bank Losses Mounting As Rates Rise

The Federal Reserve’s strategy of debt-driven economic growth with low interest rates has backfired. Banks face near-record paper losses, especially smaller ones, due to rising interest rates. As the U.S. government’s $33 TRILLION debt sees rising interest costs, the public is also grappling with surging personal debt. Despite Treasury Secretary Yellen’s confidence in the U.S. economy, indicators like declining multifamily rents and low homebuilder confidence suggest otherwise. Meanwhile, inflation, once seen as a tool to devalue debt, is now hurting the middle class and low-income workers.