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Think tank: Increased military spending may push up the U.S. deficit and borrowing costs

Think tank: Increased military spending may push up the U.S. deficit and borrowing costs

格隆汇格隆汇2026/03/16 02:13
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格隆汇 March 16th|According to Business Insider, Desmond Lachman, Senior Fellow at the conservative think tank American Enterprise Institute, stated that as the United States is forced to increase military spending in its war with Iran, investors are concerned that the scale of government spending and debt may further spiral out of control and continue to deteriorate. This has reignited market worries about inflation and government debt levels. Lachman said: "The U.S. already had a very poor budget situation when entering this conflict, and now has to significantly increase defense spending, which will only make things worse and put upward pressure on long-term interest rates." He noted that the conflict is likely to last for several weeks. Iran remains determined to maintain its blockade of the Hormuz Strait to drive up oil prices, which means the U.S. military will need at least several weeks to implement plans to open and secure the strait.
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