From Kiplinger…. But the long-term bill for that help is mounting. Congress’s own estimate of the budget deficit for fiscal year 2018 will likely come in at a hefty $775 billion, some $200 billion higher than it’s previous projection. The deficit will jump even higher next year, to $1.1 trillion, and stay above the $1-trillion mark for years to come.
All that red ink means heavier borrowing by the Treasury, since the increase in military and domestic outlays isn’t being paid for with cuts elsewhere in the budget.
And more bonds hitting the market means higher interest rates, as investors being asked to lend Washington such lofty sums seek higher returns on their money.