Government debt surge: U.S. hits $38 trillion

The United States has now crossed about $38 trillion in gross national debt — following the fastest accumulation of $1 trillion outside the pandemic era. 

Key implications and notes:

The rise reflects growing budget deficits, large-scale borrowing and fiscal pressures amid economic challenges.

High debt levels raise concerns about future borrowing costs, inflation risk and the “crowding out” of private investment. 

For households and businesses: higher interest rates, tighter credit conditions and weaker long-term growth potential may result.

It underscores urgency for fiscal discipline and structural reform, especially as other headwinds (e.g., slower growth, labour market softness) are visible.