US Government's $1.25 Trillion Interest Bill: A Warning From Elliott Wave

The US government has hit a financial threshold of spending $1.25 trillion annually to pay interest on its $40 trillion national debt.

This is largely due to the shift from historically low interest rates, which lasted for decades and allowed the government to borrow money at low costs.

Elliott Wave International had warned in 2020 that this trend was about to change, predicting rising interest rates. At the time, Federal Reserve Chairman Jerome Powell said short-term interest rates would remain near zero through 2023.

The prediction of EWI proved correct as interest rates began rising across all time frames, with some increasing tenfold and T-bill rates surging above 5%.