The U.S. national debt topped $34 trillion for the first time ever in early January, just over three months after surpassing the $33 trillion mark, according to data released by the U.S. Treasury.
Congress has punted on spending deadlines
three times since the end of September as it grapples with how to fund the government amid tensions over the ballooning national debt.
Federal Reserve Chair
Jerome Powell said in a “60 Minutes” interview with Scott Pelley that the country’s debt “is growing faster than the economy.”
“So,
it is unsustainable. I don’t think that’s at all controversial,” Powell said when asked if the national debt is a danger to the economy.
President Biden and House Republicans faced off on the borrowing limit last spring, ultimately averting disaster days before the U.S. was set to default. But Fitch Ratings downgraded the U.S. credit rating from “AAA” to “AA+” in August, citing the increasing burden of the national debt and repeated partisan standoffs over the debt limit.
Despite the Fed chair’s long-term worries about the national debt, he said members of the central bank’s rate-setting panel believe “the economy’s in a good place.”
The economy has been growing quickly, clocking in at an annual rate of 3.3 percent during the fourth quarter of 2023, according to the latest data released by the Commerce Department’s Bureau of Economic Analysis.
Inflation has also fallen drastically from its 9 percent peak in summer 2022 to 3.4 percent in December, according to the latest consumer price index. The Fed hiked interest rates from near zero in March 2022 to a range of 5.25 to 5.5 percent in June 2023, and they have held rates steady at subsequent meetings.
The Hill’s Taylor Giorno takes it away here.
