Trump's AI growth promises face rising bond yields and deficit math
Overview
The Guardian argues that the Trump administration's promise of 3% annual growth, which it ties to AI, is unlikely to close the federal deficit.
The 10-year Treasury yield has risen to its highest level in almost 25 years, and interest payments on federal debt take up 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. The US has reached that rate only once since 1959, according to the Guardian's report.
Written by AI from the articles below · updated Oct 11, 7:32 AM ET
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- The Guardian · AINewsTrump's AI-fueled growth promises face rising bond yields and deficit math
AIThe 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.
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