Fed Rate-Hike Case Faces Challenge from Soaring US Interest Costs

Bloomberg ETF analyst Eric Balchunas believes rising U.S. government interest costs will challenge the case for further Federal Reserve rate hikes.

The increasing cost of servicing U.S. government debt, he argues, is another reason to doubt expectations for additional rate increases.

Rising interest rates increase the cost of refinancing Treasury securities at prevailing rates, adding pressure to the government's fiscal situation.