The US public debt exceeds $31 trillion for the first time in history. amid record high inflation including rising interest rates and growing economic uncertainty.
The US Treasury Department said on Tuesday (October 4) that the US public debt as of Monday, October 3, was $31.1 trillion.
CNN news agency said that the US government has accelerated lending during the COVID-19 pandemic to support the country’s economy. Because such a deadly virus has affected people’s lives. including the labor market and supply chain The outstanding debt of the United States has jumped to almost $8 trillion since the beginning of 2020 and has increased by $1 trillion in just eight months.
The loan was made during the time of former President Donald Trump. Trump is running the country and the early days of President Joe’s administration. Biden takes over the United States. This is the period when interest rates are low. But now the cost of borrowing is much higher than before. As the US Federal Reserve (Fed) raises interest rates aggressively to curb inflation.
The US Federal Budget Administration (CRFB) estimates in September that Biden’s policies could increase the budget deficit by an additional $4.8 trillion between 2021 and 2031.
“Too much borrowing will create persistent inflationary pressures. This will push public debt to a record high in 2030 and cause the government to triple interest rates over the next 10 years, or even faster if interest rates rise faster and more than a previously predicted.
CRFB notes
By InfoQuest News Agency (05 Oct 65)
tags: US Treasury, USA, public debt, interest rates, inflation
