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Peter Schiff, CEO and chief global strategist of Euro Pacific Capital, warns that if interest rates climb further, the annual cost of servicing a $50 trillion U.S. national debt at an 8% rate could reach $4 trillion.
He suggests this would result in annual budget deficits exceeding $6 trillion, highlighting significant fiscal risks if rates continue to rise.
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Schiff previously highlighted the U.S. 10-year Treasury yield reaching 4.96 percent, its highest level in 19 years, in recent commentary. He later noted that 10-year Treasury yields climbed further above 5.08 percent on rising inflation concerns. These observations follow a series of warnings about growing fiscal pressures.