It’s concerning to note that the US national debt has spiked by almost a trillion dollars within just one month. According to the recent data released by FiscalData, the total public debt outstanding of the country was at $31.467 trillion on June 2nd of this year.
However, by June 30th, that number had risen to $32.332 trillion, reflecting an astonishing rise of $865 billion.
According to data from the World Bank, the United States’ debt has grown sharply over a period of 28 days. In fact, it’s so high that it surpasses the combined GDP of three major global economies.
Hong Kong’s GDP was recorded at $359.83 billion for 2022, while Finland’s was $280.82 billion and Greece’s was $219.06 billion. Together, the three economies generated $859.71 billion in wealth last year, which is less than the amount of debt the US has accumulated in just four weeks.
According to a recent report by the Congressional Budget Office (CBO), the US debt is expected to exceed GDP growth significantly. In fact, it is predicted that the debt will be worth almost three times the country’s GDP in the next thirty years.
The CBO projects that by 2053, the US GDP will reach $79.5 trillion, while the debt will skyrocket to a staggering $143.895 trillion.
US banks in the news
The Chair of the Federal Reserve, Jay Powell, has expressed his agency’s vigilance towards financial institutions with significant exposure to the commercial real estate sector.
Speaking at the ECB Forum on Central Banking, Powell acknowledged the concerns surrounding commercial real estate loans and their potential impact on the struggling banking industry.
Powell assured that the Fed is closely monitoring the situation and has identified a considerable concentration of exposure to this sector among regional banks in the United States.
“It’s something that we, of course, are watching carefully. The way it lays out is the large banks don’t have large concentrations of commercial real estate. That’s a good place to start.
