Published 2 days ago • loading... • Updated 15 hours ago
Jill On Money: Should You Worry About the $40 Trillion Debt?
Last week, the United States' total debt crossed $40 trillion, or about 120% of its GDP. The figure has doubled in the past decade under both the Trump and Biden administrations.
Revenue losses from President Donald Trump's 2017 tax cuts, spending surges during Covid-19, and the One Big Beautiful Bill Act in Trump's second term collectively increased US debt by $4.7 trillion.
Treasury Secretary Scott Bessent announced bond buybacks would be doubled, yet 30-year Treasury yields reached 5.31% recently—the highest level in almost 20 years—as fiscal pressures collide.
Rising US interest rates are pressuring Australian borrowers with fixed-rate mortgages, while materially higher rates could trigger share market falls and weaken global economic growth.
Policymakers gather Thursday at the Jackson Hole Economic Policy Symposium, where Federal Reserve Chairman Kevin Warsh will deliver his first keynote speech amid heightened bond market tensions.