#USNationalDebt The current US national debt is approximately $36.2 trillion as of May 2025, equivalent to about 122% of the country's GDP. This figure continues to increase by around $1 trillion every three months, and it has now reached about $37 trillion.

Debt Holders:

About three-quarters of the debt is held domestically by US investors, government agencies, and the Federal Reserve. The remaining quarter is held by other countries.

Economic Impact.

Impact on the Economy:

* High Interest Burden:

An increasing amount of the federal budget is spent on paying interest on the debt, reducing funds for critical investments such as education and infrastructure.

* Investment Barriers:

High debt can drive up interest rates, making loans and business investments more expensive, potentially slowing economic growth.

* Lack of Flexibility:

The government becomes limited in its ability to respond to economic crises or recessions.

* Fiscal Crisis Risk:

If investor confidence is lost, interest rates could spike sharply, triggering market instability.

In short, excessively high debt risks hindering long-term economic growth and stability.