#ETH #BTC
The United States' annual fiscal revenue is less than US$5 trillion, but the interest it needs to pay reaches US$2 trillion. This is mainly due to the long-term high deficit policy of the US government and the multiple interest rate hikes by the Federal Reserve.
First, the U.S. government has long implemented a high-deficit policy, in which government spending exceeds revenue, resulting in increasing government debt. As the size of the debt expands, so does the interest the government needs to pay.
Secondly, the Federal Reserve’s repeated interest rate hikes are also an important reason for the increase in government interest payments. Raising interest rates means the government needs to pay higher interest to attract investors to buy government bonds, thereby increasing the government's borrowing costs.
In addition, slowing U.S. economic growth and global economic uncertainty may also put pressure on government revenue. Slower economic growth means less tax revenue, while global economic uncertainty may cause investors to reduce their purchases of U.S. Treasury bonds, further increasing the government's borrowing costs and interest burden.
For this situation, the U.S. government can take a variety of measures to reduce fiscal pressure, such as reducing government spending, raising taxes, reducing deficits, etc. However, these measures may have a negative impact on the economy, so governments need to weigh the pros and cons when formulating policies. In addition, the Fed can also take steps to lower interest rates to reduce the government's interest burden, but this may lead to inflation and other economic problems.
