Discussion post. | Business & Finance homework help
However, there are some cons associated with this strategy as well. For instance, shortening the average maturity of U.S. debt outstanding means that servicing costs will continue at near 0 percent rates even after short-term rates begin rising again which could pose a risk if inflation increases significantly over time. Additionally, reducing the amount of longer-term debt may force investors out of their comfort zones and make them less likely to invest in government securities which could further complicate economic recovery efforts by decreasing demand for these bonds/notes. Ultimately, before implementing this strategy further consideration should be given as there are both possible positive and negative consequences associated with it depending on how factors like inflation or investor sentiment shift over time.