<h2 id="quick-take">Quick Take</h2><ul><li>The average Federal Funds Rate from 1955-01-01 to 2023-05-17 is 4.62%. We are now in a normal regime of interest rates.</li><li>The issue now becomes the total debt to GDP — which is roughly 120% — so as rates stay elevated, it will cost more to service the interest.</li><li>As it becomes more expensive to service the<a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/#:~:text=Spending%20Trends%20Over%20Time%20and,6.27%20trillion%20in%20FY%202022." rel="noopener noreferrer nofollow"> debt</a>, this will eat into other sectors and shrink their pie, such as health care and education, and society will break down further.</li><li>Looking out to <a href="https://www.crfb.org/blogs/just-how-big-are-federal-interest-payments" rel="noopener noreferrer nofollow">FY 2032</a>. interest costs are projected to hit $1.2 trillion, which will be the largest expenditure program, surpassing Medicaid ($789 billion) and defense ($990 billion).</li><li>The only way would be to grow GDP ahead of the debt securities and liabilities, but that looks extremely unlikely — especially with an aging population and declining population.</li></ul><figure id="attachment_325773" style="width: 1316px" class="wp-caption aligncenter"><img class="wp-image-325773 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/math.png" alt="GDP vs interest: (Source: FRED)" width="1316" height="487"><figcaption id="caption-attachment-325773" class="wp-caption-text"> GDP vs. interest: (Source: FRED) </figcaption></figure><figure id="attachment_325772" style="width: 1176px" class="wp-caption aligncenter"><img class="wp-image-325772 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/fff.jpg" alt="Fed Funds: (Source: FRED)" width="1176" height="591"><figcaption id="caption-attachment-325772" class="wp-caption-text"> Fed Funds: (Source: FRED) </figcaption></figure><p>The post <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com/insights/the-average-federal-funds-rate-from-1955-to-2023-is-4-62/">The average Federal Funds Rate from 1955 to 2023 is 4.62%</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com">CryptoSlate</a>.</p>

The average Federal Funds Rate from 1955 to 2023 is 4.62%

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