The US gross national debt exceeded $36 trillion on Thursday, according to new Treasury data.
“As if lawmakers needed any other reasons to take America’s fiscal health seriously, the gross national debt of the United States has now officially reached $36 trillion,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), said in a statement.
“Government borrowing is becoming as certain as the changing of the seasons these days.”
She continued: “The incoming Trump Administration and Members of the 119th Congress face several fiscal hurdles from the moment they take office–starting with the reinstatement of the debt ceiling in January and a $1.7 trillion PAYGO scorecard waiting to greet them. The way they approach that and other crucial decisions ahead like the expiration of discretionary spending caps and the 2017 tax cuts, as well as how they choose to offset the costs of their new policies, will determine our fiscal health for a long time.”
A new Federal Reserve report, also released last week, shows growing concern about America’s finances and their wider implications. The survey was conducted with around two dozen financial-sector participants and observers from August to October.
In the report, fears about debt stability have overtaken fears about conflict and broader economic uncertainty, including a possible trade war with China.
The Fed notes that escalation in the Middle East and Ukraine could disrupt global energy markets and commodities, causing inflationary pressures and increasing market volatility. The Fed is also warning of the potential for a nasty economic downturn, made worse by high levels of debt in the public and private sector.
The report also focuses on the potential for cyberattacks to disrupt global financial systems.