There is no doubt that US debt continues to soar and is approaching $22 trillion!
According to media reports on Thursday (10th), the current total US debt is about 21.9 trillion US dollars, of which 16 trillion US dollars is public debt.
In fact, with $21.9 trillion in debt, this Bitup was more than $2 trillion when he took office. According to Yi Niu Finance, at the beginning of Trump's term, debt began to stabilize, but with the tax cuts in effect at the end of 2017, the sharply reduced corporate tax rate reduced the US government's income, and debt rebounded again last year.
As for the reason for the soaring debt, the media wrote that part of the reason is that the Fed raises interest rates, the United Statesinterest rateContinued to rise, and debt interest costs may begin to become an increasing burden.
In addition, according to the US Congressional Budget Office (CBO), total public debt accounts for the US in fiscal year 2018.GDP(GDP78% is the highest ratio since 1950. In 2018, the ratio of deficit to GDP jumped from 3.5% in 2017 to 3.8%.
The US deficit has exceeded $1 trillion!
In addition to huge debts, the US deficit is constantly rising!
In fact, the current US deficit is now at a record high of more than $1 trillion. In this regard, most economists, including Wall Street, worry that this fact may cause trouble for future generations.
In the eyes of economists, although the US annual deficit has previously exceeded $1 trillion, it has never been the case during the period of sustained economic growth. This raises concerns that if the US economic recession comes, it is the United States. What will happen? !
In response, Wall Street’s “king of new bonds” and respected financial forecaster, Jeffrey Gundlach, warned last year that the Fed appears to be implementing a “suicide mission”, namely :improveinterest rateEspecially in the case of a growing US government deficit in GDP.
Gundlach further explained that, in general, when the deficit expands, the Fed generally lowers interest rates, while the Fed walks in the opposite direction – raising interest rates!
Federal Reserve Powell: I am very worried!
In this regard, the chairman of the Federal Reserve, Powell, finally “can’t stand” and said that he is worried about the expanding US debt.
“I am very worried about it,” Powell said on Thursday at the Washington, DC Economic Club. “From the perspective of the Fed, we are really considering the length of the business cycle: this is Our reference standards. The long-term financial situation and unsustainability of the US federal government are not factors that really affect mid-term policy decisions."
Of course, Powell also said that this is a long-term problem. In the end, the United States will have no choice but to face it.
It is worth mentioning that just last November, Trump once boasted that Haikou had to pay off all the national debt before the end of the second term (before 2025). However, as far as the current situation is concerned, this commitment may be difficult to achieve in the short term.
(Article source: Yi Niu Finance)