Interest costs on US national debt to exceed defense spending by 2028

foxbusiness.com:

American Action Forum President Doug Holtz-Eakin and Thru the Cycle President John Lonski join «The Evening Edit» to discuss the Fed raising interest rates for the 10th straight time.

The rapid increase in interest rates over the past year could cause some collateral damage to the U.S. government's finances. 

That is because as interest rates rise, the federal government's borrowing costs on its $32.48 trillion in debt will also increase.

Interest payments on the national debt are projected to be the fastest-growing part of the federal budget over the next three decades, according to the Committee for a Responsible Federal Budget, a group that advocates for reducing the deficit.

Payments are expected to triple from nearly $475 billion in fiscal year 2022 to a stunning $1.4 trillion in 2032. By 2053, the interest payments are projected to surge to $5.4 trillion.

FEDERAL DEFICIT TOPS $2 TRILLION OVER LAST 12 MONTHS

The rapid increase in interest rates over the past year could cause some collateral damage to the U.S. government's finances. (AP Photo / Patrick Semansky / File / AP Newsroom)

As a share of the economy, total interest on the national debt will hit a record 3.2% of GDP, which is the broadest measure of goods and services produced in the country, by 2030. That percentage will more than double to 6.7% by 2053.

«By 2051, spending on interest will be the single largest line item in the federal budget, surpassing Social Security, Medicare, Medicaid, and all other mandatory and discretionary spending programs,» the CRFB said in the analysis published this month.

For years, the U.S. has been able to borrow cheaply as interest rates have remained historically low. However, as the federal funds rate increases, so