Trump's AI-fueled growth promises face rising bond yields and deficit math

The Guardian argues that the Trump administration's promise of 3% annual growth, fueled by AI, is unlikely to close the federal deficit.

The 10-year Treasury yield has surged to its highest level in almost a quarter century, and interest payments on federal debt consume 3.3% of GDP. The Committee for a Responsible Federal Budget estimates that stabilizing the debt would require total factor productivity growth of 2.5% a year, which the US has reached only once since 1959.