The U.S. national debt reached an all-time high of $34.75 trillion on Thursday. In the last 24 hours alone, the debt surged by $69.41 billion, reported the U.S. Treasury’s Debt database.
In addition, the latest revised estimates from the Congressional Budget Office (CBO) project the U.S. national debt to reach $50 trillion by 2034. That’s another 10 years from today and an increase of 44% by the next decade. The amount is greater than at any point in history making the U.S. economy fragile.
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U.S. National Debt Skyrockets To $34.75 Trillion, Could Reach $50 Trillion in 2034
Source: The Hill / Mariam Zuhaib, File
Just three months ago, the CBO had forecasted the U.S. national debt could reach $48.3 trillion by 2034. The revised estimates put the numbers up to $50 trillion, an increase of $1.7 trillion.
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The CBO has also forecasted that inflation in the U.S. could slow down during the second half of 2024. The development will bring relief to the economy as investors and common people alike are burdened with inflation. If inflation in the U.S. slows down, the Feds might initiate interest rate cuts to ease the economy. Therefore, the next 10 years will see the U.S. national debt skyrocket causing discomfort in the economy. “In response to that slowdown in inflation, the Federal Reserve is expected to begin reducing the federal funds rate in early 2025,” read the report.
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“As a percentage of GDP, debt is projected to reach 109% in 2028, an amount greater than at any point in the nation’s history. The U.S. national debt would continue increasing over the remainder of the projection period, equaling 122% of GDP at the end of 2034, about 25 percentage points larger than it was at the end of 2023 and two and a half times its average percentage over the past 50 years,” read the projection.