US National Debt Swells Amid Trump-Era Tax Cuts and Rising Borrowing Costs
The United States' federal debt has surged to a historic level under Donald Trump, while interest rates on 30-year Treasury bonds have climbed to their highest in two decades.
Under Donald Trump, the United States has seen its federal debt climb sharply, hitting a historic peak that surpasses previous post-World-War II levels, according to the USDebtClock and the Senate Joint Economic Committee. Debt is expanding at a rate that now represents more than 120 % of the nation’s GDP. At the same time, the yield on 30-year Treasury bonds has risen to the highest level in almost twenty years, reaching 5.28 % compared with a ten-year average near 3.2 %.
Norway’s sovereign wealth fund, which holds a large portfolio of US government bonds, has voiced concern and recommended reducing its Treasury holdings substantially. Analysts attribute the debt surge to Republican tax cuts and fiscal policies, while critics argue that the growing deficit threatens economic stability and the country’s credit reputation.
Why it matters
Rising US debt and higher borrowing costs could affect global markets and the fiscal health of the American economy.
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