WASHINGTON (Pakistan Point News / Sputnik - 13th August, 2020) The United States will continue its to heavy borrow from money markets so long as interest rates remain low enough for it to supply the economy with cash in the bid to spur recovery from the novel coronavirus pandemic, White House Economic Adviser Larry Kudlow said on Thursday.
"[W]e're sensitive to the fact that we're doing so much heavy borrowing," Kudlow told CNBC. "But again, with ultra-low interest rates, [like] 60 basis points on the ten-year [Treasury note], if you have to borrow this is the time to borrow. It's an emergency situation and we have to reinvest that money into the American economy."
Kudlow acknowledged that there are limits on the power to borrow, but said the US government is not near the limit yet.
The US Federal debt hovered around $23 trillion just two quarters ago, commanding about 106 percent of GDP. At present, the debt is approaching $27 trillion due to borrowing to restart the economy as it was severely affected by the measures implemented to fight the novel coronavirus crisis since March.
