The Cost of Financing Washington Is Surging

Remember the dawn of the Biden administration when the president kept pretending that our fast-growing economy was in dire need of massive intervention? Remember how he kept ignoring the warnings from former Obama economic officials about his planned spending spree? Consumers have been suffering the consequences ever since. But what’s not fully appreciated is that Mr. Biden is still making the same mistake, while the same cast of former Obama colleagues is still trying to explain that the inflation problem has not been resolved. Consumers don’t need this column to explain the pain of inflation. But someone needs to explain to the president how prolonged inflation is making it suddenly expensive to finance his beloved government. Today’s bad inflation news means higher interest rates and that means the cost of servicing federal debt will continue to surge.

This column has been saying for a while that the U.S. is not doomed to recession and that inflation may be around for while. Thank goodness for the resilience of the American economy but no one’s feeling gratitude about Washington’s management of our currency. Today Jack Denton at Barron’s reports: