The US government's debt has reached a record high of $25 trillion as the deficit worsens.
To fill the ever-expanding budget gap, the US government has accumulated a debt of over $25 trillion.
According to the information obtained from the Zhongtong Finance APP, in order to fill the growing budget deficit, the US government has accumulated a debt of over 25 trillion US dollars. Data released on Friday showed that the total amount of unpaid short-term US Treasury bills, notes, and bonds in July increased by about 1%, reaching a record high of 25.137 trillion US dollars. This number is expected to continue to rise.
In June 2020, the total amount of outstanding marketable debt was less than 20 trillion US dollars. In June 2018, the total debt was less than 15 trillion US dollars. In 2018, the US government significantly increased borrowing to fund tax cuts, and in 2020, borrowing surged due to the response to the COVID-19 pandemic. Currently, the US government's debt is still increasing, partly due to higher interest rates pushing up the cost of servicing existing debt. In addition, the outlook for the federal budget deficit is worsening.
To address the increasingly deteriorating fiscal deficit, the US Treasury Department has increased the size of long-term bond auctions for the first time in two and a half years. The increase in bond supply has raised concerns among investors, and US bond yields reached a year-high this week.
Most of the debt growth in July came from short-term Treasury bills, which are typically expanded first when the Treasury Department's borrowing needs increase.