The Fed's Warning: Interest Rates Are Coming Down

In 2000, at 5.25%, it would have cost the US government $300 billion a year to pay the interest on the debt. Now compare that to today, where we have a $32.7 trillion national debt. If the government had to pay a market rate of interest on that debt, that's $1.8 trillion a year in interest. That is an enormous number. The Fed has got to tell the markets that rates are coming down. It's got to give the markets that false sense of confidence not to have to worry that high interest rates are here to stay.