Business

U.S. national debt surpasses 30 trln USD as Fed prepares to raise rates

Published

2 years ago

03/02/2022

MNN

The U.S. national debt has surpassed 30 trillion U.S. dollars for the first time, raising concerns about future fiscal sustainability, as the Federal Reserve prepares to raise interest rates to tame inflation.

The total public debt outstanding exceeded 30 trillion dollars on Monday, which included 23.5 trillion dollars in debt held by the public and 6.5 trillion dollars in intergovernmental holdings, according to the U.S. Treasury Department’s daily treasury statement.

The national debt increased sharply in recent years, in part because of former President Donald Trump’s large tax cuts and massive government spending to fight the COVID-19 pandemic, analysts said.

The milestone of 30 trillion dollars in debt should be “a giant red flag for all of us about America’s future economic health, generational equity, and role in the world,” said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.

“How we got here is a long story of repeated chapters of fiscal irresponsibility on both sides of the aisle. Leaders in Washington have made imprudent decisions over decades, time and again choosing a favorite new tax cut or spending program above our collective future,” Peterson said Tuesday in a statement.

Peterson also warned that on the current trajectory, the interest on the national debt will rise to eat up nearly 50 cents of every tax dollar collected in 2050.

Photo taken on Jan. 25, 2022 shows the U.S. Federal Reserve in Washington, D.C., the United States. (Photo by Ting Shen/Xinhua)

“It’s not only unsustainable, it’s a moral failure that will harm our children and grandchildren,” he said, urging policymakers to put the nation on a strong and sustainable fiscal path.

The rising national debt came after U.S. Congress passed legislation in December to raise the federal government’s debt limit by 2.5 trillion dollars to about 31.4 trillion dollars, averting a looming debt default.

The Fed signaled last week that the central bank is ready to raise interest rates as soon as March to combat surging inflation as it exits from the ultra-loose monetary policy enacted at the start of the pandemic.

Now traders have priced in a total of five quarter-point rate hikes this year, bringing the federal funds rate to a range of 1 percent to 1.25 percent by the end of the year. The rate hikes will certainly push up U.S. debt service costs.

A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the U.S. dollar, making it more costly to finance public and private activity in international markets, the Congressional Budget Office has warned.

Source: Xinhua News Agency

Business

Maldivian regional fleet grows with fourth ATR arrival

Published

1 day ago

09/05/2024

Maldivian, the national carrier of the island nation on Wednesday, announced the arrival of its newest addition to the fleet, a fourth ATR 42-600 aircraft.

The new aircraft added to the carrier landed at Velana International Airport some time on Wednesday.

In order to commemorate the milestone, a special ceremony was held at VIA which was attended by distinguished guests, officials and key partners.

The new aircraft, Maldivian added, will enhance the airline’s capacity to serve more routes and provide increased connectivity for both locals and tourists. Moreover, this fleet expansion also reflects Maldivian’s commitment to offering exceptional service and convenience to its passengers.

At Wednesday’s event to welcome the new ATR aircraft, Maldivian’s Managing Director Ibrahim Iyas emphasized the importance of the new aircraft in the company’s growth strategy.

“We have made great strides toward achieving both operational excellence and a greater passenger experience with the addition of this brand-new ATR aircraft to our fleet,” Iyas commented.

“This aircraft offers an unprecedented level of comfort thanks to improved interior humidity control and much lower noise levels. Modern avionics and exceptional fuel economy which further support our dedication to sustainability while maximizing performance throughout our expanding network.”

Maldivian fleet currently has 25 aircraft which include an Airbus A320 commercial carrier, four ATRs, nine Dash-8 series aircraft and eleven Twin Otter seaplanes.

Source(s): sun.mv

Business

Economic growth slowed down 4.7% in 2023.: MMA

Published

2 days ago

08/05/2024

Maldives Monetary Authority (MMA) reports the economic growth slowed down 4.7% in 2023.

In its annual report, the central bank reported economic growth slowed owing to muddied performances in the tourism and construction industries.

While last year economic growth slowed 4.7%, it rose by 13.9% in 2022.

Tourism industry activity slipped last year because of the decline in the average duration of stay.

While tourism and construction industries, two of the major economic sectors, observed decline, other major sectors such as financial, fisheries, and private sector credit had gone up.

The Maldives government is taking corrective measures to rectify the economic growth, while President Dr. Mohamed Muizzu’s vision is to elevate the country’s national GDP to USD 12 billion, according to the Minister of Economic Development and Trade Mohamed Saeed.

Source(s): sun.mv

Business

TMA becomes first Asian operator to receive Havilland Certificate

Published

2 days ago

08/05/2024

Trans Maldivian Airways (TMA), the world’s largest seaplane operator, receives De Havilland Canada’s endorsement certificate, making it the first operator in Asia to achieve the recognition.

At the official endorsement ceremony held last Sunday, De Havilland’s Chief Executive Officer Brian Chafe awarded the endorsement to TMA Chief Executive Officer A.U.M Fazy.

De Havilland owners Sherry Brideson and Robert McDonald, along with senior representatives of the Canada’s aerospace company and TMA officiated the ceremony.

TMA Chief Fauzy had thanked De Havilland’s continued support with its Twin Otters, elevating the operator’s success.

De Havilland CEO highlighted TMA’s success of completing two million flight cycles, which he added is unprecedented anywhere else.

The Canadian aerospace company affirmed continued support to TMA in future as well.

Source(s): sun.mv