Enormous risks: US bond strategy can become a trap – dangerous game with debt

In recent years, the United States has increasingly relied on short-term bonds instead of issuing long-term government bonds . To keep its exploding spending under control, the government is playing a dangerous game with its debt burden.

U.S. Treasury Secretary Scott Bessent recently defended this strategy in an interview with Bloomberg , explaining that interest rates on long-term bonds are simply too high right now. He speculates that U.S. interest rates will soon fall, which he argues makes it unwise to borrow long-term at current high rates.

wallstreetONLINE Editorial Team

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