Trump’s tax and spending plan could sharply raise interest rates

Donald Trump’s tax and spending plan could nearly triple interest rates and increase the federal government’s debt by $14 trillion by 2026, according to an estimate by Mark Zandi and his colleagues at Moody’s Analytics. In 2018, the federal government could be paying more than $900 billion in interest—nearly twice what it pays today.

By 2026, it could be paying more than $1.8 trillion in debt service, 50 percent more than under current fiscal policy. Zandi primarily looked at the effects of Trump’s plan on the overall economy. And it would be bad: His economic policy would throw the country into a recession by early 2018 and dampen growth over the next decade. But let’s just focus on what it could mean for interest rates and the federal debt.....
http://www.csmonitor.com/Business/Tax-VOX/2016/0622/Trump-s-tax-and-spending-plan-could-sharply-raise-interest-rates