US National Debt Reaches $40tn

The US national debt has surpassed $40tn, reaching a milestone of over $29.4tn in the UK and $64tn by 2036.

According to Treasury figures, the interest rate on 30-year bonds reached its highest level in almost 20 years at 5.34% on Tuesday.

The rise reflects heavy spending under both the Trump and Biden administrations, along with steadily increasing interest payments that have added to the total.

In 2016, the national debt stood at just under $20tn.

The Congressional Budget Office (CBO) had projected overall borrowing would reach $39.6tn by the end of fiscal year 2026, external.

Concerns about how quickly the government's borrowing needs are growing and what that means for future interest costs have sharpened.

The CBO said the US is nearing its $41.1tn debt ceiling, with debt projected to climb to about $64tn by 2036.

Global borrowing costs hit fresh highs over oil, AI, and inflation concerns, while the average interest rate on 30-year fixed mortgages remains lower than in 2023 when such deals averaged 7.7%.

The US national debt has surpassed $40tn, reaching a milestone of over $29.4tn in the UK and $64tn by 2036.

According to Treasury figures, the interest rate on 30-year bonds reached its highest level in almost 20 years at 5.34% on Tuesday.

The rise reflects heavy spending under both the Trump and Biden administrations, along with steadily increasing interest payments that have added to the total.

In 2016, the national debt stood at just under $20tn.

The Congressional Budget Office (CBO) had projected overall borrowing would reach $39.6tn by the end of fiscal year 2026, external.

Concerns about how quickly the government's borrowing needs are growing and what that means for future interest costs have sharpened.

The CBO said the US is nearing its $41.1tn debt ceiling, with debt projected to climb to about $64tn by 2036.

Global borrowing costs hit fresh highs over oil, AI, and inflation concerns, while the average interest rate on 30-year fixed mortgages remains lower than in 2023 when such deals averaged 7.7%.

The US has longer-term fixed mortgage deals than other countries such as the UK.

Currently, the average interest rate on 30-year fixed mortgages is 6.67%, according to finance firm Freddie Mac.

Minutes released on Wednesday by the Federal Reserve revealed that concerns over inflation deepened among policymakers at its last meeting.

It said there were several participants in favour of increased rates last month, with some suggesting interest rates were not high enough to see price rises fall back to the Fed's 2% target for inflation.

The Fed is expected to hold its policy rate steady again at its September meeting after recent data showed inflation eased slightly and firms unexpectedly shedding jobs in July.

Additional reporting by Osmond Chia

The US national debt has surpassed $40tn, reaching a milestone of over $29.4tn in the UK and $64tn by 2036.

According to Treasury figures, the interest rate on 30-year bonds reached its highest level in almost 20 years at 5.34% on Tuesday.

The rise reflects heavy spending under both the Trump and Biden administrations, along with steadily increasing interest payments that have added to the total.

In 2016, the national debt stood at just under $20tn.

The Congressional Budget Office (CBO) had projected overall borrowing would reach $39.6tn by the end of fiscal year 2026, external.

Concerns about how quickly the government's borrowing needs are growing and what that means for future interest costs have sharpened.

The CBO said the US is nearing its $41.1tn debt ceiling, with debt projected to climb to about $64tn by 2036.

Global borrowing costs hit fresh highs over oil, AI, and inflation concerns, while the average interest rate on 30-year fixed mortgages remains lower than in 2023 when such deals averaged 7.7%.

The US has longer-term fixed mortgage deals than other countries such as the UK.

Currently, the average interest rate on 30-year fixed mortgages is 6.67%, according to finance firm Freddie Mac.

Minutes released on Wednesday by the Federal Reserve revealed that concerns over inflation deepened among policymakers at its last meeting.

It said there were several participants in favour of increased rates last month, with some suggesting interest rates were not high enough to see price rises fall back to the Fed's 2% target for inflation.

The Fed is expected to hold its policy rate steady again at its September meeting after recent data showed inflation eased slightly and firms unexpectedly shedding jobs in July.