Washington The USA started the new financial year with a record national debt of more than 31 trillion US dollars (31 trillion euros). Debt stood at $31.1 trillion on Tuesday, according to data from the US Treasury Department. This brings the country closer to the $31.4 trillion debt ceiling.
In the United States, Congress sets a debt ceiling at irregular intervals and determines how much money the state can borrow. The limit has been increased dozens of times since it was introduced in 1917, otherwise the money would have run out. It was last raised at the end of 2021 – by $2.5 trillion. This credit line should be sufficient to finance government business until 2023.
The USA is currently in a difficult economic situation. Inflation is at its highest level in decades. In the fight against the price increase, the US Federal Reserve has started to raise the key interest rate quickly and in large steps. This in turn makes credit more expensive. Experts also see this as a major problem with regard to national debt.
More: ‘The Fed is going too far’: Market turmoil sparks debate over pace of rate hikes
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