The U.S. federal debt hit a record $40 trillion this week. The debt has doubled since 2017, and just paying interest on the accumulated debt now costs the government more than $1 trillion a year.
The U.S. national debt has reached $40 trillion, raising concerns over long-term economic stability as interest payments outpace defense spending.
The U.S. national debt has reached $40 trillion, raising concerns over long-term economic stability as interest payments outpace defense spending. PULSE POINTS WHAT HAPPENED: The U.S. national debt has reached a historic milestone of $40 trillion, with the federal government on track to borrow over $2 trillion this year alone. Interest payments on the debt have now surpassed defense spending, highlighting the growing financial strain the debt is causing. DETAIL: The debt has remained above 100 percent of GDP since the COVID-19 pandemic, raising concerns about the nation’s fiscal sustainability. Rising interest rates and increasing debt levels have contributed to soaring interest payments. Treasury Secretary Scott Bessent has set a…Open
Treasury data showed that the national debt is now $40,,047,425,768,420.22, with $32.26 trillion being held by the public and $7.78 trillion held by intragovernmental holdings.
The global bond selloff has pushed the yield on the 30-year U.S. Treasury bond to its highest level since 2007, while the 10-year Treasury yield has climbed to a 19-month high, increasing the government’s borrowing costs and potentially making everything from mortgages to business loans more expensive for Americans.
"Over the long term, it is unsustainable for debt to grow faster than the economy grows," the GAO report says. The public debt is projected to "grow more than twice as fast as the economy over the next 10 years, reaching 123% of the size of the economy in 2036."
"At the current growth rate, we will hit a staggering $40 trillion in national debt before this fall's elections. Borrowing trillion after trillion at this rapid pace with no plan in place is the definition of unsustainable," Peterson explained.
Alarming number further heightens the risk America will experience some kind of financial crisis unless deficits are tamed, Committee for a Responsible Federal Budget's Maya MacGuineas says.