National debt exceeds $40 trillion for the first time

The public debt, the money the country owes to investors, banks, or other countries, surpassed the $40 trillion mark for the first time, according to data published by the Treasury Department.

Following Tuesday's latest issuance, the national debt stood at $40.047 trillion on Wednesday, climbing from the $39.986 trillion recorded the day before.

The figure contrasts with a previous forecast by the Congressional Budget Office, which projected that total debt would reach $39.4 trillion by the end of fiscal year 2026, which ends on Sep. 30.

Borrowing costs have skyrocketed for the United States, mainly due to concerns related to inflation, according to AFP.

Yields on long-term (30-year) Treasury bonds rose on Tuesday to their highest level since 2007, reflecting mounting pressure on prices due to the war in the Middle East and concerns about the budget deficit.

The increase is forcing the U.S. government to refinance debt at the highest rates since before the 2008 global financial crisis.