What portion of all federal revenues is consumed by interest on the national debt?
In 2021, the interest on the national debt was $461 billion. This amounted to 11% of federal revenues and $3,551 for every household in the nation. Even though the national debt was larger in 2021 than any other era of U.S. history, interest on the debt was lower than its historical average. This is because the average interest rate was less than half of its typical level. This is due to factors like Federal Reserve policies. While driving down interest rates, such policies can drive up inflation and transfer wealth from middle-income households to wealthy ones. Hence, the Federal Reserve has begun to reverse such policies, and the Congressional Budget Office "anticipates" that interest payments on the national debt "will increase considerably as interest rates return to more typical levels."