U.S. National Debt Surpasses $40 Trillion for First Time in History

The United States’ gross federal debt surpassed $40 trillion for the first time, reaching about $40.047 trillion on August 18, according to Treasury data. Debt held by the public was about $32.266 trillion, while intragovernmental holdings were roughly $7.782 trillion. The milestone came less than five months after debt crossed $39 trillion and after the total had more than doubled from about $19.95 trillion in January 2017. The development coincided with pressure in the Treasury market. On August 19, the Treasury announced that selected long-end liquidity-support buybacks would increase from $2 billion to at least $4 billion per operation beginning September 9. The Federal Reserve’s July minutes showed three voting members favored a quarter-point rate increase, although the committee voted 9-3 to maintain rates at 3.5% to 3.75%. President Donald Trump continued urging rate cuts, citing federal interest costs. Analysts differ over the long-term fiscal risks and federal borrowing implications.