How Rising Debt Service Costs Squeeze Federal Spending

As of mid-June 2026, the U.S. national debt stands at $38.5 trillion, and the federal government is spending over $1 trillion annually just on interest payments. In this episode, Lucas and Luna dig into how rising Treasury yields are driving up debt service costs, crowding out other federal spending, and creating a fiscal feedback loop. With the 10-year yield at 4.45 percent and the 30-year near 5 percent, the cost of servicing the debt is now growing faster than the economy. They explore what this means for future deficits, the likelihood of tax hikes or spending cuts, and whether the bond market will force Washington's hand. Using fresh market data and recent debt projections, they explain why the interest bill has become a major policy constraint. #NationalDebt #TreasuryYields #FiscalPolicy #DebtService #InterestCosts #FederalBudget #Deficit #BondMarket #TenYearYield #ThirtyYearYield #DebtToGDP #CrowdingOut #FiscalConstraint #Economics #FexingoBusiness #BusinessPodcast #FederalDebt #InterestRates Keep every episode free: buymeacoffee.com/fexingo