The US economy is facing a setback as a result of decisions made since 2015 by President Donald Trump, the Supreme Court’s ruling that the president’s tariff collection was illegal, and federal government spending that exceeds revenue by $2 trillion. All of this has pushed the sovereign debt above $4 trillion.

“This milestone was reached just five months after surpassing $39 trillion,” according to data released last Wednesday by the Treasury Department. According to the report, “Debt Calculated to the Penny,” “the total liabilities of the US federal government are $40.047 trillion.”

The situation is exacerbated by the increase in debt related to healthcare and social security, in addition to the interest payments made by the country. “This figure contrasts sharply with a previous forecast from the Congressional Budget Office, which projected that total debt would reach $39.4 trillion by the end of fiscal year 2026 in September.”

The projections are discouraging and assume that the debt will continue to rise, especially considering that the yield on the 30-year US Treasury bond reached its highest level in 19 years last week amid fears of rising inflation due to the war in Iran.

M.Pino

Source: dw

(Reference image source: Tabrez Syed on Unsplash)

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