Latest Government debt News

Congressional Budget Office says inflation to last into 2023

May. 25, 2022 18:16 PM EDT

WASHINGTON (AP) — The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. The nonpartisan agency expects the consumer price index to...

Fed officials signal rates may head to 'restrictive' levels

May. 25, 2022 15:20 PM EDT

WASHINGTON (AP) — Federal Reserve officials agreed when they met earlier this month that they may have to raise interest rates to levels that would weaken the economy as part of their drive to curb inflation, which is near a four-decade high. At the same time, many of the...

US to end Russia's ability to pay international investors

May. 25, 2022 02:38 AM EDT

WASHINGTON (AP) — The U.S. will close the last avenue for Russia to pay its billions in debt back to international investors on Wednesday, making a Russian default on its debts for the first time since the Bolshevik Revolution all but inevitable. The Treasury Department said in a...

EU to keep budget rules looser for longer amid war fallout

May. 23, 2022 11:19 AM EDT

BRUSSELS (AP) — The European Union has moved to prolong looser limits on spending by member countries for an extra year in a bid to counter the economic fallout from Russia’s war in Ukraine. The European Commission recommended on Monday suspending the EU’s regular rules on...

China becomes wild card in Sri Lanka's debt crisis

May. 20, 2022 01:18 AM EDT

COLOMBO, Sri Lanka (AP) — China says its initiative to build ports and other infrastructure across Asia and Africa, paid for with Chinese loans, will boost trade. But in a cautionary tale for borrowers, Sri Lanka's multibillion-dollar debt to Beijing threatens to hinder efforts to resolve a...

Sri Lankan power family falls from grace as economy tanks

May. 13, 2022 05:32 AM EDT

NEW DELHI (AP) — With one brother president, another prime minister and three more family members cabinet ministers, it appeared that the Rajapaksa clan had consolidated its grip on power in Sri Lanka after decades in and out of government. But as a national debt crisis spirals out...

'Corrupt to core' Caribbean premier gets bond in drug case

May. 11, 2022 18:17 PM EDT

MIAMI (AP) — The premier of the British Virgin Islands, whom U.S. prosecutors described as “corrupt to the core,” was given a $500,000 bond that could see him released from prison as he awaits trial on charges tied to a U.S. narcotics sting. In a surprise decision, federal...

EXPLAINER: Recession fears grow. But how high is the risk?

May. 09, 2022 13:13 PM EDT

WASHINGTON (AP) — Inflation is at a 40-year high. Stock prices are sinking. The Federal Reserve is making borrowing much costlier. And the economy actually shrank in the first three months of this year. Is the United States at risk of enduring another recession, just two years...

Rising interest rates in US will hinder foreign economies

May. 05, 2022 00:23 AM EDT

WASHINGTON (AP) — When the Federal Reserve raises interest rates — as it did Wednesday — the impact doesn’t stop with U.S. homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans. The fallout can be felt beyond America’s borders,...

Biden showcases deficit progress in bid to counter critics

May. 04, 2022 14:02 PM EDT

WASHINGTON (AP) — President Joe Biden on Wednesday highlighted new figures showing the government's red ink will grow less than expected this year and the national debt will shrink this quarter as he tried to counter criticism of his economic leadership amid growing dismay over inflation going...