The $6 Trillion Dollar Question – Who Will Buy Our Debts?
The current economic crisis and extraordinary economic interventions to combat it will mean substantial new borrowing on top of an already precarious fiscal position. The federal government borrowed $1.3 trillion in the month of April – more than it borrowed in all of 2019 – and we project the government will issue roughly $6 trillion of new debt through the end of 2021.
As debt continues to grow, many have asked who is likely to buy this debt. Committee for a Responsible Federal Budget senior vice president and senior policy director Marc Goldwein discussed this very topic. In the webinar, Marc talked about who owns the federal debt, what entities are continuing to buy our debt, and where we expect future debt issuances to come from. He also talked about the interactions between monetary and fiscal policy, and we will take your questions.
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