- The US national debt has surpassed $40 trillion, having doubled in the last decade.
- The CBO said the US is nearing its $41.1tn debt ceiling, with debt projected to climb to about $64tn by 2036.
- The Treasury Department announced on Wednesday that it would increase its buyback operations by "at least double" from $2bn to $4bn, effective from 9 September to 4 November, reflecting its "desire to provide greater liquidity support" for longer-term bonds.
- Minutes from the Federal Reserve revealed concerns over inflation deepened, with many participants saying rate hikes would "likely be necessary if inflation did not decline".
The US national debt has exceeded $40 trillion, a significant increase from just under $20 trillion in 2016, reflecting a decade of heavy spending and rising interest payments under both the Trump and Biden administrations.1
The Congressional Budget Office (CBO) warns that the nation is approaching its $41.1 trillion debt ceiling, with projections indicating a staggering $64 trillion by 2036.2
Jacks from the National University of Singapore noted, "The pace of America's growing debt is accelerating and at some point, the bills will come due."
The debt-to-GDP ratio stands at 125.8%, according to the International Monetary Fund (IMF), which is significantly higher than the UK and China's ratios of 103.6% and 106.9%, respectively. Japan leads with a debt-to-GDP ratio exceeding 200%.
Additionally, the Treasury Department announced plans to increase its buyback operations from $2 billion to $4 billion to enhance liquidity support for long-term bonds, effective from September 9 to November 4. Minutes from the Federal Reserve revealed growing concerns over inflation, with participants suggesting that rate hikes may be necessary if inflation does not decline.3456
“The Treasury Department will double its buyback operations to $4bn from September 9 to November 4 to support longer-term bonds. Federal Reserve minutes show many officials see rate hikes as likely if inflation does not decline.”
BBC
