US starts the new fiscal year with a record $31 trillion debt, close to the ceiling set by Congress.
US starts fiscal year with record $31 trillion in debt
The United States national gross national debt has surpassed $31 trillion, according to a US Treasury report released on Tuesday that logs America’s daily finances.
Edging closer to the statutory ceiling of roughly $31.4 trillion – an artificial cap Congress placed on the US government’s ability to borrow – the debt numbers hit an already tenuous economy facing high inflation, rising interest rates and a strong US dollar.
And while President Joe Biden has touted his administration’s deficit reduction efforts this year and recently signed the so-called Inflation Reduction Act, which attempts to tame 40-year high price increases caused by a variety of economic factors, economists say the latest debt numbers are a cause for concern.
Owen Zidar, a Princeton economist, said rising interest rates will exacerbate the nation’s growing debt issues and make the debt itself more costly. The Federal Reserve has raised rates several times this year in an effort to combat inflation.