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Government borrowing binge could crowd out mortgages and investment


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Published in Travel and Leisure on by Fortune   Print publication without navigation

U.S. Treasuries accounted for $28.3 trillion, or roughly 60%, of the country's $46.9 trillion fixed-income market last year.

The article from Fortune, published on June 10, 2025, discusses the potential economic repercussions of the U.S. government's ongoing borrowing spree. It highlights concerns that the government's need to finance its escalating debt could lead to a "crowding out" effect, where increased government borrowing drives up interest rates, making loans more expensive for consumers and businesses. This could result in reduced mortgage lending and business investment, potentially slowing economic growth. The article also notes that the Federal Reserve's efforts to manage inflation through higher interest rates could exacerbate these issues, as the government competes with the private sector for capital in a higher interest rate environment.

Read the Full Fortune Article at:
[ https://fortune.com/2025/06/10/government-debt-borrowing-binge-could-crowd-out-mortgages-and-business-investment/ ]

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