Comment on U.S. interest rates may pose risk to Trump budget’s optimistic assumptions

WASHINGTON — If President Donald Trump’s budget does touch off an economic boom that pushes growth up to 3 percent a year as it assumes, the government’s borrowing is likely to cost much more than has been factored into the administration’s fiscal proposals.Along with costing the government more, rising rates could crimp spending among households and companies, cutting into the very growth that the administration is counting on to eliminate government deficits over the next decade.Economists say there is a rough, but direct, tie between economic growth and the 10-year Treasury bond used as a benchmark in government budgeting.