Pizza orders have increased near the Pentagon.

The post Powell’s rate cuts can’t rescue Washington from its trillion-dollar interest burden appeared on BitcoinEthereumNews.com. The U.S. government is still bleeding nearly $1 trillion every year just to cover interest payments on its debt, and that long-awaited rate cut from Jerome Powell isn’t going to change that. Roughly 80% of federal debt is made up of notes and bonds with terms locked in for anywhere from two to thirty years. Those rates were locked when the securities were first issued, and no amount of trimming short-term rates will unwind those old contracts. New lower-rate borrowing can only happen when those older ones mature, which takes years. Jessica Riedl, senior fellow at the Manhattan Institute, said, “You’re not going to drastically change budget deficits that are approaching $2 trillion. It’s too small of a rate change on too small a share of our total debt.” Long-term bonds still crush federal finances Washington’s main interest relief comes through short-term Treasury bills that are often issued and have durations as short as four weeks. Those bills do respond to Fed rate changes quickly. But that’s a small part of the overall federal debt. The rest is stuck under older, higher-rate contracts that don’t budge with short-term cuts. And even if long-term yields dip, it takes time for cheaper replacements to cycle in. Investors also don’t just look at what Powell does with the Fed’s short-term rate. They factor in long-run inflation risks, fears over Fed independence, and the overall fiscal path of the U.S. government. Jared Bernstein, head of the White House Council of Economic Advisers, said, “Investors still seem to be seeking a term premium when they lend to us.” That means they want more interest in return for locking in their money long-term. This keeps the yield curve steep and the government’s long-term borrowing costs high. The U.S. now spends more on interest than it does…

How to Start a Crypto Exchange in South Korea South Korea remains one of the most influential crypto markets in the world. With a tech-savvy population, h

Elon Musk confirmed that SpaceX will go public in 2025 with a target valuation of $1.5 trillion.