Treasury Department announces sobering milestone.
America’s total national public debt outstanding is now above $30 trillion, according to Treasury Department data. Government borrowing accelerated during the COVID-19 pandemic as Washington spent aggressively to cushion the economic blow from the crisis. The national debt has surged by about $7 trillion since the end of 2019.
This latest debt milestone comes at a delicate time as borrowing costs are expected to rise. After many years of low interest rates, the Federal Reserve is shifting into inflation-fighting mode, planning to launch its first series of rate hikes since 2015. Higher borrowing costs will only make it more difficult to finance the nation’s mountain of debt.
The federal government now owes almost $3 trillion to foreign and international investors, led by Japan and China. Eventually, that will need to be paid back—with interest.
Federal Reserve Chairman, Jerome Powell said, “We are on an unsustainable path. Debt is not at an unsustainable level, but the path is unsustainable—meaning it’s growing faster than the economy, marginally faster than the economy. We have to address that over time. We will address it over time. And the better way to do it is soon.”
The latest national debt calculations show that the debt is $90,271 for every person living in the U.S.
As the Lord Leads, Pray with Us…
- For the chairman of the Federal Reserve as members assess interest rate hikes.
- For Treasury Department officials as they evaluate the economy and national debt.
- For the president and Congress as federal spending continues to grow and expand.
Sources: Wall Street Journal, CNN, Business Week, JustFacts
