US Debt Tops $40.05 Trillion as July Deficit Hits $432.3 Billion
Updated
Updated · CBS New York · Aug 19
US Debt Tops $40.05 Trillion as July Deficit Hits $432.3 Billion
3 articles · Updated · CBS New York · Aug 19
Summary
$40.05 trillion in federal debt was outstanding Tuesday, more than double the $19.4 trillion level a decade ago and just 4 1/2 years after the U.S. first crossed $30 trillion.
$432.3 billion in July red ink and a year-to-date deficit nearing $1.8 trillion show the pace is still accelerating, after years of pandemic-era stimulus and persistent budget gaps pushed debt held by the public near 100% of GDP.
$1.2 trillion in interest costs this year has become the largest federal expense after Social Security and Medicare, as Treasury yields have climbed to pre-global-financial-crisis highs and raised borrowing costs.
Treasury said it will increase long-end bond repurchases Wednesday, while investors weigh heavy government borrowing, AI-linked corporate issuance, rising term premia and a Fed still reluctant to cut rates without clearer inflation and labor data.