President Donald Trumps massive fiscal stimulus plans are adding to the U.S. debt overload and forcing the government to drive up bond issuance as the Federal Reserve shrinks its balance sheet.
The Treasury Department will boost the amount of long-term debt it sells to $73 billion this quarter, lifting the auction sizes of coupon-bearing and floating-rate debt again after doing so last quarter for the first time since 2009, the agency said Wednesday in its quarterly refunding announcement.
The countrys debt load is seen spiraling compared with the rest of the world, with forecasts showing that in five years it will have a bleaker outlook than even Italy, the perennial poor man of the Group of Seven industrial nations.