US public debt surpasses $31 trillion for the first time in history. amid record high inflation including rising interest rates and increasing economic uncertainty.
US public debt surpasses $31 trillion for the first time in history. amid record high inflation including rising interest rates and increasing economic uncertainty.
The U.S. Treasury Department said on Tuesday (Oct 4) that as of Monday, Oct. 3, the US public debt stood at $31.1 trillion.
CNN news agency reported that the US government has accelerated borrowing during the Covid-19 epidemic to support the country’s economy. Because such a deadly virus has affected people’s lives. including the labor market and supply chain The US debt has risen to nearly $8 trillion. Since the beginning of 2020 and has surged to $1 trillion in just 8 months.
The loans came during the time of former President Donald Trump and the early days of President Joe Biden’s administration in 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) aggressively raises interest rates to curb inflation.
The US Federal Budget Administration (CRFB) estimates in September that Biden’s policies This could increase the budget deficit by an additional $4.8 trillion between 2021 and 2031.
“Borrowing in too much will create persistent inflationary pressures. This will push public debt to a new record high in 2030 and cause the government to triple interest payments over the next 10 years or sooner. If interest rates rise quickly and more than previously anticipated,” CRFB said.
Proofreading….Suree Silawong