US Debt Hits Record $36.5 Trillion As G7 Economies Confront Fiscal Strains
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US debt hits $36.5T, rising by $1T every 100 days, sparking market and investor concerns. G7 nations face bond pressure as yields climb and investor demand for debt weakens. Trump’s fiscal policies may add $3.3T to US debt by 2034, prompting global financial warnings. The United States has surpassed a new mark, with the national debt reaching $36.5 trillion as of May 25, 2025. The figure includes $28.9 trillion in publicly held debt and $7.3 trillion in intragovernmental holdings. According to government data, the debt is now rising at an accelerated pace, with an additional $1 trillion being added every 100 days. This trend is placing increased pressure on financial markets and amplifying concerns over long-term economic stability. The latest figures have prompted renewed scrutiny from both domestic and international investors. A recent report from Reuters highlighted the U.S. as a growing concern in the global bond market. In April, a selloff in bonds triggered a surge in 10-year Treasury yields, raising borrowing costs across multiple sectors. Moody’s credit downgrade last month, which removed the final AAA rating for the U.S., has contributed to the withdrawal of institutional buyers from Treasury markets. At the policy level, the Committee for a Responsible Federal Budget estimates that recently enacted tax and spending measures under President Donald Trump could increase federal debt by an additional $3.3 trillion by 2034. JP Morgan CEO Jamie Dimon described the situation as a potential market fracture, citing fiscal mismanagement. Meanwhile, Treasury Secretary Scott Bessent has reassured markets that the U.S. will continue to meet its obligations. Some regulatory discussions are now focused on the supplementary leverage ratio rules, which, if revised, could allow banks to re-enter the Treasury market in greater capacity. However, no changes have been finalized. Debt Pressures Expand Across G7 Economies Debt-related stress is…
Filed under: News - @ June 4, 2025 7:23 am