Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 53 , 01 December 2023
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The Relationship Between Continued Fed Rate Hikes and the Risk of US Government Debt
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Abstract
The management of interest rates by central banks is a critical aspect of economic policy, and the Federal Reserve (the Fed) holds a central role in guiding the monetary course of the United States. Over the years, the Fed has utilized interest rate adjustments to achieve diverse objectives, from controlling inflation to promoting economic growth. However, the ongoing debate surrounding the Fed's persistent interest rate hikes centers on the potential risks that may arise in relation to the US government debt. This essay delves into the implications of these interest rate hikes on the risk associated with the US government's debt. By examining the impact of increased interest rates on the cost of borrowing, market dynamics, and the challenges of debt refinancing, we can gain insights into the potential ramifications on the fiscal health of the nation. In addition, we will explore counterarguments and potential mitigating measures put forth by policymakers to balance the objectives of economic stability and debt sustainability.
Keywords
fed rate, interest rate, government debt
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-153-7
- ISBN (Online)
- 978-1-83558-154-4
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/53/20230813
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited