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Fed Will Likely Hike Eight Times to Curb Inflation
- vondur 5y agoWould this increase the amount of interest that the US has to pay on its outstanding loans or are they fixed at the time of issuance?
- honkycat 5y agodepends on the loan. Some loans are locked in ( most mortgages except for really bad ones ).
- grapescheesee 5y agoCalling them loans makes it sound like they will be paid back in full. We can hardly manage to make interest payments without increasing the debt limit every few months. Considering we printed several trillions of dollars in the last year just for 'covid' has a price. It will be paid by the youth as they continue to afford real assets.
- wcoenen 5y agoThey are typically fixed. There are exceptions like TIPS, Series I, and FRNs which are more complicated. See Treasury direct for more details: https://www.treasurydirect.gov/indiv/products/products.htm https://www.treasurydirect.gov/indiv/products/products.htm But even for the fixed bills, notes and bonds, they are typically rolled over into new ones when they mature. So the government is still exposed to changing market conditions. But it's not something that happens for all of the debt at once.
- dmm 5y ago> It's just not for all of the debt at once. To give some rough numbers to this idea: In March 2020, about 15% matures in <52 weeks(T-bills) and 58% matures in 2-10 years(T-notes). See figure 1-2: https://www.cbo.gov/publication/56309 https://www.cbo.gov/publication/56309