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The US’s mountain of debt has become a cause of concern for investors this year.
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The government is likely to spend more on interest payments than on defense over the next five years, per Capital Group.
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The ballooning debt burden could eventually chip away at the demand for Treasury bonds, according to the investment manager.
The US’s mountain of debt is growing every day – and the government could soon be spending more on interest payments than on defense, according to Capital Group.
“US debt dynamics are evolving in a way that requires attention,” Darrell Spence, an economist for the US asset manager, said in a research note back in October. “Over the next five years, net interest payments on the debt are expected to surpass defense spending.”
Spence added that if the world’s largest economy’s debt pile rises…
