Home / Business and Economy / US Debt Soars: $104B Interest Paid in 9 Weeks!
US Debt Soars: $104B Interest Paid in 9 Weeks!
4 Dec
Summary
- US Treasury paid $104 billion in interest on debt in nine weeks.
- Trump's tariffs aim to offset $3 trillion by 2035, but fall short.
- Global growth forecast at 3.2% in 2026, US economy at 2.4%.
The US Treasury has already disbursed $104 billion in interest payments on the nation's $38 trillion debt within the first nine weeks of fiscal year 2026. This amount constitutes 15% of the federal budget for the current fiscal year, highlighting a significant financial burden.
Efforts to mitigate this include President Trump's administration proposing tariff strategies estimated to generate $3 trillion by 2035, though this figure is lower than prior projections. Despite potential revenue from these duties, they are unlikely to cover the full annual interest payments exceeding $1 trillion. Deutsche Bank forecasts global growth at 3.2% and US growth at 2.4% for 2026, driven by fading trade uncertainty and tax cuts.
However, widening global deficits pose a risk, with the US deficit expected to reach 6.7% in 2026. Potential solutions like leveraging the Great Wealth Transfer, estimated between $80 trillion and $124 trillion over two decades, are being considered by economists to bolster public finances through various tax and regulatory measures.
