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Rising US debt threatens next US administration as deficits widen
The federal debt is at an all-time high, up from about $35tn when Trump took office, while inflation and higher costs of servicing obligations have added pressure.
A Guardian Economics analysis argues that the United States’ rising debt could constrain the next Democratic administration, as federal obligations become more expensive to finance.
The piece points to the federal debt reaching a record level, citing that it has climbed from about $35tn when Trump took office to around $40tn.
It also links the broader debt trajectory to policies associated with the Republican “starve the beast” strategy, which aimed to reduce government resources by depriving the budget of tax revenue.
The article further notes that inflation following a US Iran-related episode raised the cost of servicing government debt, and says that tariff plans promoted as revenue sources were later struck down, with the government forced to return tens of billions of dollars to importers.