TechFlow news, October 10 — According to Jinshi Data, institutional analysis indicates that interest rates over the next decade could be higher than in the past ten years, potentially rising significantly. Despite the Federal Reserve cutting rates by 50 basis points three weeks ago and signaling further easing ahead, the yield on 10-year U.S. Treasury notes has climbed to 4%, reaching a two-month high.
The analysis attributes rising rates to two main factors: first, inflation and economic growth are expected to remain above pre-pandemic levels; second, the federal debt problem is worsening and could deteriorate further after the upcoming election. The situation may become particularly risky if former President Trump wins and Republicans retain control of Congress.
Maya MacGuineas, president of the CRFB, stated that while both Harris and Trump have proposed spending increases and tax cuts that would add to the national debt, "Trump’s agenda would be far worse than Harris’s."
