July 28, 2023 | Premium Service | This past week The Institutional Risk Analyst was in Washington, D.C. for meetings in the mortgage and banking channels. Suffice to say that with interest rates rising, career officials in the Executive Branch are preparing for an eventual market break as the federal deficit explodes.
“The last Treasury Secretary that tried to extend the maturities of government debt was Jack Lew (2013-2017), but Secretary Janet Yellen missed a big opportunity,” says a senior career official. The chart below shows the interest expense for the federal government.
