How rising interest rates will affect federal spending and debt

By Zach Halaschak

Published April 22, 2022 11:00am ET

How rising interest rates will affect federal spending and debt — In this Sept. 24, 2013, file photo, just cut stacks of $100 bills make their way down the line at the Bureau of Engraving and Printing Western Currency Facility in Fort Worth, Texas. | (AP Photo/LM Otero, File)

Interest rates are rising quickly — this is how those rising rates are set to increase federal spending and deficits.

At the start of November, the yield on a 10-year Treasury note was hovering around 1.5%, a record low level. Now, following the Federal Reserve’s efforts to tighten money, the yield on the 10-year Treasurys has leaped to 2.86% — the highest it has been since near the end of 2018.