Apollo's Torsten Slok Warns Recession Would Worsen U.S. Budget Deficit, Saving $500 Billion in Long-Term Interest Rates

The recession cannot be used to improve budget deficits. Specifically, due to an economic recession, the US government is expected to be able to save about 500 billion dollars of interest payments per year if interest rates drop 2%, but due to a decrease in tax revenue due to the economic recession and an increase in unemployment benefits, the deterioration range is more than double the interest payment reduction amount obtained by falling interest rates. https://t.co/qiewX0GXJP

A US recession would widen the US budget deficit, eclipsing the savings from lower interest rates and borrowing costs, according to Apollo’s chief economist https://t.co/XfpLL5It4L

"Itis not possible to improve the budget deficit by creating a recession because during a recession government finances would deteriorate by double the amount saved in interest payments - Torsten Sløk. Apollo Chief Economist https://t.co/V3PxwBcB4R