In 2019, the cost of interest on the national debt will hit $390 billion. This is nearly 50 percent more than in 2017, according to the Congressional Budget Office. The increase is due to interest rates returning to about 3.0 to 3.5 percent. The Federal Open Market Committee increased the fed funds rate 25 basis points to a range 2 percent to 2.25 percent and there are plans for several more interest rate increases.
Increasing interest payments on US debt will squeeze out any other federal spending.
There are also increasing commitments to pensions and healthcare.
Interest will be heading to traditional levels of 4.2%. Debt will continue to rise by around $800 billion to $1 trillion per year. Debt in 2019 will be $22.5 trillion.
3% interest rates would have $675 billion interest each year.
4% interest rates would have $900 billion interest each year.
