The US economy is struggling under the burden of the debt
The US debt has been growing at a faster pace in recent months, rising by about $1 trillion every 100 days.
These debts exceeded the permanent barrier of $34 trillion on January 4, a continuing update according to US Treasury Department data.
Debts reached $33 trillion on September 15, 2023, and $32 trillion on June 15, 2023, recording this rapid increase, as the previous increase was $1 trillion from $31 trillion, which took about 8 months.
The US debt, which is the amount the federal government borrows to cover operating expenses, is currently about $34.4 trillion.
Michael Hartnett, investment strategist at Bank of America, expects the 100-day pattern to remain the closest as debt moves from $34 trillion to $35 trillion.
Hartnett points out the importance of reducing US dependence on oil and enhancing fiscal sustainability, while maintaining levels of social spending and investment.
Moody’s Investors Service increased its outlook for the US government’s ratings to negative due to increasing risks to the country’s financial strength.
It’s worth mentioning, that US congress passed a draft legislation to avoid government shutdown to the US president for approval, last week.
