U.S. Debt Surge to $37 Trillion Sparks Fiscal Stability Concerns
The U.S. national debt has ballooned to a record $37 trillion, surpassing 120% of GDP and triggering warnings from economists. Rising interest rates have escalated annual debt payments to $1.1 trillion—now exceeding both Medicare and defense expenditures. The Congressional Budget Office projects deficits could expand by $2.8 trillion over the next decade if current policies persist.
Years of aggressive stimulus spending and tax cuts have fueled the debt spiral. Treasury strategists warn the threshold for sustainability remains unknown, forcing tough choices between spending cuts, tax hikes, or both. Market uncertainty grows as policymakers grapple with solutions.