NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said interest rates are worth watching in 2024.
"The Federal Reserve indicates they may reduce interest rates three times in 2024," Goss said. "I don't expect that, but the real question is, why is the Fed reducing interest rates? Is it because they see a weaker economy, or is it because they've got inflation in tow? It's very difficult to determine. They're talking on both sides of their mouth."
Does the fact that it is a Presidential election year factor in at all? Goss isn't so sure.
"Historically, that's the case," Goss said. "I'm not so sure this time. We'll have to wait and see. I'll be more forgiving in that front, right now."
Goss is really concerned about the government living within its means, however.
"The debt has grown dramatically," Goss said. "Again, it's a wartime deficit in a peacetime economy. Janet Yellen, Secretary of the Treasury, just keeps on borrowing. Most everybody out there has refinanced. Everybody refinanced before the higher interest rates, except the federal government. With higher interest rates, the interest on the debt is larger than the federal defense budget."
The Committee for a Responsible Federal Budget says that will most likely actually happen by 2025 and that debt service will become the second-largest government program, exceeding Medicare, by 2026.
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