August 20, 2026, 05:07 GMT (10:37 AM Sri Lanka local time)
The U.S. national debt has crossed the $40 trillion threshold, doubling over the combined presidencies of Donald Trump and Joe Biden. This milestone underscores the mounting fiscal strain on Washington, driven by pandemic relief spending, tax cuts, military expenditures, and rising interest costs.
Economists warn that the pace of debt accumulation is unsustainable, with borrowing costs now consuming a larger share of federal revenue. The Treasury has stepped up bond buybacks to stabilize markets, but investor confidence remains fragile. Analysts note that while the U.S. economy continues to grow, the sheer scale of obligations raises concerns about long‑term fiscal discipline and the potential for higher inflationary pressures.
Global markets are watching closely, as the U.S. dollar’s role as the world’s reserve currency means any turbulence in American debt management could ripple across economies worldwide.
(Source – Reuters)
—Agencies
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