A paper presented at the Jackson Hole conference suggests that U.S. government debt could rise to 250% of gross domestic product (GDP) without causing upward pressure on interest rates. This projection indicates that even with such a high debt-to-GDP ratio, borrowing costs might remain stable. Meanwhile, U.S. Treasury interest payments have reached a record $1.2 trillion over the past 12 months, and if interest rates remain unchanged, the annual interest expense is expected to increase to $1.4 trillion in 2026. Experts emphasize the need for lower interest rates to manage these rising costs effectively. Additionally, concerns have been raised that a downturn in U.S. employment or equity prices could reduce tax receipts, leading to a larger budget deficit despite tariff revenues.