US deficit hits record $2 trillion amid $1.052T interest payments
Business
The US government just hit a record $2 trillion federal deficit this year, including $1.052 trillion in interest payments on its $40 trillion debt, yep, that's more than what's spent on the military and only trails Social Security and Medicare.
This surge is making the federal deficit much bigger and harder to manage.
US interest costs exceed 3% GDP
Interest costs now eat up over 3% of the US GDP, more than during the 1940s and nearly as much as the 1990s.
Economists warn we're stuck in a "vicious cycle," where higher rates mean even more debt payments, which could hurt future spending.
With investors demanding higher returns to cover these risks, experts warn of a "vicious cycle" of rising borrowing costs.