The Fed would only cut rates to help the U.S. service its soaring debt, fund manager says
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Fund manager Freddie Lait believes that the Federal Reserve would only cut rates to help the U.S. cover interest payments for the national debt. Lait argues that there is no economic rationale for cutting rates and that the current level of interest rates is sufficient to balance inflation and growth. He suggests that the U.S. government's inability to afford higher rates is the only reason the Fed might be tempted to cut. The U.S. government is facing increased interest payments on its debt, with federal spending on interest expected to climb to $870 billion this year. Lait believes that the exponential growth in government spending on debt will pose a problem for the next U.S. president. He suggests that the solution would be to either live with higher yields or reduce government spending. Lait also notes that the level of U.S. national debt is not the issue, but rather the growth in interest payments, which he finds staggering.

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https://www.cnbc.com/2024/05/01/fund-manager-says-there-is-no-economic-rationale-for-fed-rate-cuts.html