Federal Reserve Bank of Minneapolis’ Post

We undertook a sector-by-sector analysis of American debt in the summer of 2019 and concluded that angst was not really warranted at that time. However, interest rates have risen significantly, and total debt is up by more than 30% in only four years. In the first installment of a five-part series of reports, we ask whether we need to rethink our earlier conclusion.

The Rising Cost 💰 of Government Debt: What It Means for #Investors and #Banks ❓ As interest rates have climbed 📈 globally, the cost of government debt has increased, putting pressure on the fiscal positions of many countries. This shift can significantly influence investor decisions when it comes to purchasing state bonds. Investors are now more cautious, evaluating the risk-reward ratio in light of these increased costs. For #banks 🏦, particularly in their Asset and Liability Management (#ALM) departments, this trend has serious implications. The growing credit-spread risks (#CSR) must be factored into their #bond #portfolio #strategies. Ignoring these #risks could lead to underestimated exposure and potential losses. To understand this trend, you can check out the infographic in the article "The Rising Cost of Government Debt" by Visual Capitalist https://lnkd.in/epiKS_nV #GovernmentDebt #InterestRates #Investing #Banking #ALM #CreditRisk #Finance #Economy #bankingindustry

As markets shrug off soaring U.S. debt, we unpack the debt dilemma and argue that positioning portfolios for a debt crisis can lead to subpar returns. Let’s connect! We want to talk about your financial future. #rbcwealthmanagement #yourfinancialfuture

The national debt gets a lot of coverage in the news cycle. But how should investors really weigh its impact on the economy and market at large? Mike and Ross attempt to create a video that will stand the test of time as they share their perspective. #economy #finance https://lnkd.in/e9DYtg2j

As unwieldy as the federal debt may seem, the government is currently more than able to manage what it owes and its future ability to borrow doesn’t appear threatened. US government debt has undoubtedly risen in recent years, as have the costs of servicing that debt. However, we believe there is likely little impact to the stock market in the near term. US debt could become unmanageable one day. But for now, we think it’s most important to stay focused on your long-term investment goals and keep the US government’s debt in perspective.

Many in popular media have been quick to outline an impending debt crisis in the U.S. Let's look at the facts to see whether this truly is the case, or if fixed income securities continue to offer compelling opportunities for 2024. #fixedincome #inflation #investmentreturns #portfoliomanagement #financialplanning #investmentadvice

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗨𝗦 𝗗𝗲𝗯𝘁 𝗖𝗲𝗶𝗹𝗶𝗻𝗴: 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲, 𝗟𝗶𝗺𝗶𝘁, 𝗮𝗻𝗱 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗗𝗲𝗳𝗮𝘂𝗹𝘁 ✔ The US debt ceiling is a crucial aspect of the country's fiscal policy, with significant implications for the economy and financial markets. This article provides insights into the concept of the US debt ceiling, the upcoming deadline, the limit, and the potential consequences of default. ✨Key aspects of the US debt ceiling: ✨Deadline Awareness ✨Debt Limit Explained ✨Consequences of Default ✨Political and Economic Implications ✨Potential Solutions and Actions For more comprehensive information on the US debt ceiling and its implications, read the insightful article on Entrepreneur Media written by Madeline Garfinkle. (ctto) Share your thoughts in the COMMENTS below. 🔽 https://lnkd.in/et8Pmq6d #businessloans #business #lending #businesscapital #venturecapital #capitalmarkets

Bank of America CEO says we need to take action on the national debt now, while ‘we’re in relatively good times’ The U.S. national debt has doubled over the past decade, rising from $17.64 trillion at the end of 2014 to $35.35 trillion this week. To put that in perspective, the national debt is now so massive it costs the federal government $3 billion per day just to pay the interest—a little more than the annual GDP of Belize. Reading more requires subscription to Fortune - https://lnkd.in/gpiADBRi

The US national debt topped a psychologically important milestone of $35 trillion in recent days and has risen by $1 trillion since January — mounting by nearly $5 billion every day so far in 2025. What this could mean to your personal finance? Let us know if we can help. https://lnkd.in/eU8f4pkk