Blame Trump for Rising Borrowing Costs
Lenders don’t trust the United States anymore.
The United States, once considered a trustworthy borrower with solid finances and honest leadership, has fallen to the second category of borrowers in the global bond market. Under President Trump, the U.S. now pays higher interest rates than many other major borrowers, including Greece and Estonia. While factors like global inflation, the Iran war, and government debt during the pandemic contribute to rising borrowing costs, the higher rates for American debt can be largely attributed to President Trump and the Republican-led government.
The nation's massive debt, reaching $34 trillion by the time Trump left office, has caused interest costs to surpass Medicare funding. Other countries with high debts, such as Italy and Greece, pay less due to their stable debt burdens and independent central banks. However, Trump's attacks on the Federal Reserve's independence and repeated threats to default on the national debt have undermined trust in the dollar and contributed to the higher interest rates faced by American borrowers.
Written by urgent.news from The Atlantic's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
