A seemingly unrelenting wave of debt is piling onto America’s balance sheet.
New data from the U.S. Treasury Department show the federal debt increased by over $296.524 billion from August 8th to September 8th, reaching a total of $32.940 trillion.
The new numbers come as JPMorgan Chase CEO Jamie Dimon issues a warning on America’s fiscal trajectory.
At a conference hosted by Barclays, Dimon told reporters that America’s rapid rate of spending is bound to have a significant impact on households.
“I just think people make a mistake to look at real-time numbers and not look at the future. And the future has quantitative tightening.
We’ve been spending money like drunken sailors around the world, this war in Ukraine is still going on. Those are really big buts. To say the consumer is strong today, meaning you got to have a booming environment for years, is a huge mistake.”
Meanwhile, Congress is facing pressure to pass a new budget before funding for the US government runs out on September 30th.
If a deal is not reached on time, about three of out five federal civilian workers are expected to be furloughed as portions of the government shut down.
Goldman Sachs says a shutdown would likely lower America’s economic growth by 0.2% per week until a deal is reached.
“Over the years, there have been many near misses and more false alarms than actual shutdowns.
That said, the ingredients for a shutdown — a thin House majority, a dispute on spending levels, and potential complications from various political issues — are present.”
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