U.S. Treasury Secretary: High interest rates challenge U.S. debt

ChainCatcher news, U.S. Treasury Secretary Yellen stated that the prospect of maintaining high interest rates in the long term makes it more difficult to control U.S. borrowing demands, highlighting the importance of focusing on increasing fiscal revenue in budget negotiations with Republican lawmakers. Yellen said, "We have raised our interest rate expectations, which indeed has an impact. This makes it more challenging to keep deficits and interest payments under control." She reiterated the importance of the inflation-adjusted interest payments relative to GDP as a ratio indicator. This ratio has increased over the past year, but the White House expects it to stabilize around 1.3% over the next decade. "I don't have a hard rule, but I don't want to see it above 2%," she said. This is her clearest comment on this indicator to date.