🚨 US National Debt Hits Record $37 Trillion 💸

The US government's gross national debt has officially surpassed $37 trillion, a record number that highlights the country's accelerating debt and increased cost pressures on taxpayers. This milestone comes less than eight months after the nation hit the $36 trillion threshold and just over a year after reaching $35 trillion 📈.

What's Behind the Surge? 🤔

- Government Spending: The rapid increase in debt is attributed to the federal government's response to the COVID-19 pandemic, which featured massive borrowing to stabilize and support the economy.

- Tax Cuts and Spending Legislation: The One Big Beautiful Bill Act is expected to add $4.1 trillion to the national debt over the next decade, with the Congressional Budget Office estimating a significant increase in borrowing .

Concerns and Implications 📊

- Interest Rates: Rising debt levels could push Treasury yields higher, increasing borrowing costs across the economy and impacting mortgage rates, corporate debt refinancing, and more.

- Inflation Risk: Large, persistent deficits can be inflationary if demand outpaces supply, especially if financed by central bank purchases of government bonds.

- Credit Rating Impact: Moody's downgraded the US credit rating in May due to concerns over rising debt, and further downgrades could lead to higher risk premiums for US debt.

Expert Opinions 💬

- Michael Peterson: "The national debt soaring past $37 trillion sends yet another clear message about America’s unsustainable fiscal path."

- Maya MacGuineas: "Reaching this milestone is a moment no one in Washington can be proud of – our fiscal situation is woefully unbalanced, yet Congress keeps on making the situation worse" .#usa #news #altsesaon #market #MarketMeltdown $XRP $BNB $MANTA