Next Treasury Secretary To Extend Maturity of Debt?
In a CNBC “Squawk Box” interview of Steven Mnuchin, the next Treasury Secretary, Steve brought up the idea of creating a super-long bond. The debt is so enormous that the only way to deal with it is to extend the payback date when a significant portion of that debt becomes due. Steven Mnuchin told CNBC…
Mnuchin: We will look at potentially extending the maturity of the debt because eventually, we are going to have higher interest rates, and that is something this country is going to need to deal with.
Caruso-Cabrera: How long, 50 years? 100 years? Will you do what some of these other countries are doing?
Mnuchin: I think we’ll take a look at everything and see what makes sense.
Issuing more debt is likely to increase the crowding out effect. It also directly pushes that debt on to future generations. At this point, it seems we have few other options.
Here is the interview of Steven Mnuchin on CNBC: