US Spending $3 Billion Daily on National Debt Interest
The United States is currently allocating a substantial sum daily just to manage the interest on its national debt, reveals Torsten Sløk, Chief Economist at Apollo Global Management.
According to Treasury Department figures, the government is now incurring roughly $3 billion in daily interest expenses, a sharp increase from approximately $1.5 billion at the beginning of 2022.
For the fiscal year 2024, net interest payments have totaled $763 billion, making it the second-largest budgetary item after Social Security, which is projected to cost $1.213 trillion, as per the latest Treasury report.
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Interest on the national debt is anticipated to reach $1.157 trillion for the full fiscal year 2024. Despite potential interest rate cuts, Sløk predicts that daily payments exceeding $1 billion will persist. He notes that even with a 1% rate cut and a corresponding decline in the yield curve, daily interest costs would only decrease to $2.5 billion.
The Treasury Department’s ‘Debt to the Penny’ database reported a new peak in the national debt at $35.346 trillion on September 9th, with the figure standing at $35.273 trillion as of September 12th.
Alexander Stefanov
Reporter at CoinsPress
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