The US national debt just surged to a new all-time high of $34.75 trillion.
The new milestone comes after the nation’s outstanding debt jumped $69.41 billion in a single day, according to new numbers from the U.S. Treasury’s Debt to the Penny database.
According to a new report from the Congressional Budget Office (CBO), the country’s total outstanding public debt is projected to reach $50.7 trillion by the end of 2034.
“As a percentage of GDP, debt is projected to reach 109% in 2028, an amount greater than at any point in the nation’s history.
Debt would continue increasing over the remainder of the projection period, equaling 122% of GDP at the end of 2034—about 25 percentage points larger than it was at the end of 2023 and two and a half times its average percentage over the past 50 years.”
The new projections are significantly higher than just four months ago, when the agency said it expected the debt to hit $48.3 trillion by 2034, equaling 116% of GDP.
The CBO predicts the rate of inflation will slow for the remainder of this year and next year.
“The rate of inflation jumped in the first quarter of 2024, after easing since late 2022. CBO projects that inflation will slow during the rest of 2024 and in 2025, reaching the Federal Reserve’s target of 2 percent by 2026 and stabilizing thereafter.
In response to that slowdown in inflation, the Federal Reserve is expected to begin reducing the federal funds rate in early 2025.”
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