Low interest rates make the borrowing cheaper, but the new debt shows how much new spending outpaces falling revenue
The Treasury Department plans to borrow $2.99 trillion from April through June to cover the federal government’s massive response to the coronavirus pandemic, issuing a tremendous level of debt to try to limit the economic impact on U.S. businesses and workers.
Last year, Treasury borrowed $1.28 trillion over 12 months. Its plan to borrow $3 trillion would be done over just three months.
“This is just a recurring experience, which is you look at the numbers, and they’re bigger than you ever imagined could be possible,” said Douglas Holtz-Eakin, president of the American Action Forum and former director of the Congressional Budget Office. “And then you look at the size of the problem and you think that’s perfectly justified.” Continue reading.