U.S. Debt Crosses $40 Trillion As Fiscal Alarm Grows
America’s national debt has surpassed $40 trillion for the first time, intensifying concern over rising interest costs, elevated bond yields and the risk that persistent deficits could become a drag on the U.S. and global economy.
The Treasury Department’s latest figures put total federal debt above the $40-trillion threshold, with publicly held debt accounting for the great majority of the total. The milestone arrived only months after debt passed $39 trillion, underscoring the speed at which borrowing is accumulating as Washington finances defence, Social Security, Medicare and increasingly expensive interest payments.
The warning is not simply about a large headline number. Interest on the debt has become one of Washington’s biggest expenditures, while investors are demanding higher yields to hold long-term government bonds. The Treasury has moved to more than double buybacks of longer-dated securities in an effort to steady markets, but fiscal analysts warn that without sustained changes to taxes or spending, debt-service costs could crowd out investment, raise borrowing costs and amplify shocks well beyond the United States.
