At the end of December 2023, U.S. government debt topped $34 trillion and it will add another $1 trillion dollars to that total by the end of March 2024. The national debt includes all previous years of deficit spending funded by borrowing. While the amount is staggering and will continue to grow, the nation cannot quit borrowing given the current funding mandates.
Tag: debt
House Passes Bill to Avoid Government Shutdown, Senate to Vote Next (Macro News for November 18, 2023 – November 24, 2023)
A bill that will provide stopgap funding and prevent a government shutdown passed the House and will now head to the Senate. The bill provides for full government funding through January 19, 2024 for the U.S. government and then reduces funding through February 2, 2024 unless a new bill is passed. The federal government will shut down on November 17, 2023 unless the appropriations bill passes.
The Fitch Analyst Behind the U.S. Downgrade Breaks Down the Decision—and How the Country Can Regain the Top Rating (Macro News for September 2, 2023 – September 8, 2023)
Independent credit rating agency Fitch Ratings lowered the U.S.' long-term debt rating from AAA to AA+ due to the debt ceiling debacle and the overall high debt level. The global stock markets fell following the announcement. Fitch's analyst in charge of the downgrade, Richard Francis, cited deteriorating metrics with regard to U.S. debt. For example, in 2007 government debt was below 60% of U.S. gross domestic product and it is now 113% of GDP.
McCarthy’s Debt Deal Avoids Default but May Worsen Recession (Macro News for June 3, 2023 – June 9, 2023)
Republicans and Democrats finally reached an agreement to increase the debt ceiling and keep the U.S. from defaulting on its debt. While the immediate financial crisis has been averted, many economists believe the slower spending demanded by House Speaker Kevin McCarthy and agreed to by President Biden that is embedded in the deal will make the expected recession worse.
Pearson Economic News 