Marketplace All-in-One This GOP bill will affect borrowing costs for everyone
May 29, 2025
A GOP spending and tax bill could significantly raise the national debt, leading to higher borrowing costs for everyone. YouTube stars are shifting the entertainment game by launching their own production studios, challenging traditional Hollywood. Furthermore, a proposed Texas bill seeks to hold oil companies accountable for inactive wells, addressing environmental concerns. Lastly, the podcast dives into the intricate impacts of recent tariff policies on the economy, affecting businesses and consumers alike.
AI Snips
Chapters
Transcript
Episode notes
GOP Bill Raises Borrowing Costs
- The GOP spending bill could add $3.8 trillion to national debt in a decade, raising borrowing costs broadly.
- Higher government debt means bond investors demand higher yields, pushing up mortgage and business loan rates.
Post-Pandemic Rates Normalize
- The low interest rate period before the pandemic was unusual and unsustainable.
- The recent rise in rates slows borrowing decisions and investment, reflecting a return to normal conditions.
Government Debt Ups Interest Rates
- Government borrowing competes with private sector for funds, pushing all borrowing costs up.
- As government debt rises, lenders prefer safer government bonds, increasing mortgage and business loan rates.