What's happening with the national debt — and how it could affect your wallet
The US national debt has surpassed $40 trillion, prompting concerns about rising interest rates and their impact on consumer loans. Treasury officials are attempting to manage bond yields through debt buybacks to stabilize the fiscal situation.
Why it matters
High national debt levels can lead to increased borrowing costs for individuals, affecting mortgages and auto loans.
The US national debt recently passed $40 trillion for the first time. Mandel NGAN / AFP via Getty Images The US national debt topped $40 trillion this week, potentially impacting consumer interest rates. Treasury Secretary Scott Bessent is using debt buybacks to manage high bond yields. Rising federal debt since 2015 has increased loan costs and could continue to impact consumer loans. Owing $40 trillion might sound daunting. But for the American government, ballooning debt has become the new business as usual — even if it takes a bite out of consumers' wallets . On Wednesday, the Treasury Department announced that the national debt had reached over $40 trillion, up by more than $11 trillion over the last five years.
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