"many Fed cuts-a-coming"

Michael Hartnett on fiscal dominance driving interest rate policy:

"US national debt up >$1tn YTD to >$35tn;

interest payment on debt set to rise to $1.4tn by Jul'25 given debt dynamics if rates unchanged… even if Fed cuts 200bps (2%) interest payments rise to $1.2tn;

reversal of fiscal impulse (US govt spend -5% YoY) + cost of debt = many Fed cuts-a-coming."

🔗 BofA (Hartnett)