Fiscal Watchdog Warns US Is ‘Entering a Debt Spiral’ as Treasury Rates Hit 5% — Ed Yardeni Flags Bond Vigilante Risk If Fed 'Fails to Subdue Inflation'
The Committee for a Responsible Federal Budget warned that the U.S. is “entering a debt spiral” as interest rates on new Treasuries run above expected economic growth. CRFB said last week that rates on new Treasury bonds and notes are around 5%, while medium-term nominal economic growth is expected to be closer to 4%.