G7 economies struggle under debt pressure as US national debt touches $36.5T record
The post G7 economies struggle under debt pressure as US national debt touches $36.5T record appeared on BitcoinEthereumNews.com. The US national debt has now hit a new all-time high of $36.5 trillion, based on official government numbers. The total includes $28.9 trillion owed to the public and $7.3 trillion tied up in intragovernmental holdings. The debt is growing so fast that it’s adding around $1 trillion every 100 days, forcing Wall Street, global investors, and international financial watchdogs to start paying very close attention. According to Reuters, this massive surge in liabilities has made the United States a central concern for the global bond market. After Moody’s downgraded America’s final AAA credit rating last month, investors started pulling back from government bonds. The most recent scare came in April, when a wave of bond selling pushed US 10-year Treasury yields dangerously high, raising borrowing costs across the board. Trump’s spending fuels long-term debt fears At the heart of the growing problem is President Donald Trump’s new tax and spending policy, which the Committee for a Responsible Federal Budget projects will increase the national debt by another $3.3 trillion by 2034. That’s on top of the current $36.5 trillion and has already drawn fire from major financial players. Jamie Dimon, the CEO of JP Morgan, warned of a “crack in the bond market,” blaming it on reckless overspending and poor fiscal management. Even though Scott Bessent, the current Treasury Secretary, insisted the US will “never default,” global confidence is wearing thin. Investors still expect the government to try and cap 10-year yields below 4.5%, but the window to do that is shrinking. Meanwhile, banks are watching for possible changes to supplementary leverage ratio rules. If regulators loosen restrictions, banks might jump back into the Treasury market with bigger positions, but for now, most are sitting tight. G7 nations face rising debt pressure as Japan, UK, France, and Italy respond…
The post G7 economies struggle under debt pressure as US national debt touches $36.5T record appeared on BitcoinEthereumNews.com.
The US national debt has now hit a new all-time high of $36.5 trillion, based on official government numbers. The total includes $28.9 trillion owed to the public and $7.3 trillion tied up in intragovernmental holdings. The debt is growing so fast that it’s adding around $1 trillion every 100 days, forcing Wall Street, global investors, and international financial watchdogs to start paying very close attention. According to Reuters, this massive surge in liabilities has made the United States a central concern for the global bond market. After Moody’s downgraded America’s final AAA credit rating last month, investors started pulling back from government bonds. The most recent scare came in April, when a wave of bond selling pushed US 10-year Treasury yields dangerously high, raising borrowing costs across the board. Trump’s spending fuels long-term debt fears At the heart of the growing problem is President Donald Trump’s new tax and spending policy, which the Committee for a Responsible Federal Budget projects will increase the national debt by another $3.3 trillion by 2034. That’s on top of the current $36.5 trillion and has already drawn fire from major financial players. Jamie Dimon, the CEO of JP Morgan, warned of a “crack in the bond market,” blaming it on reckless overspending and poor fiscal management. Even though Scott Bessent, the current Treasury Secretary, insisted the US will “never default,” global confidence is wearing thin. Investors still expect the government to try and cap 10-year yields below 4.5%, but the window to do that is shrinking. Meanwhile, banks are watching for possible changes to supplementary leverage ratio rules. If regulators loosen restrictions, banks might jump back into the Treasury market with bigger positions, but for now, most are sitting tight. G7 nations face rising debt pressure as Japan, UK, France, and Italy respond…
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