Debt damper

High US govt debt can increase risks

Irrespective of the outcome of the US presidential election in November, one issue poised to dominate policy discussions is the rapidly increasing US government debt stock. According to the US Treasury Department data, federal debt, which was at 123 per cent of gross domestic product (GDP) in 2023, has nearly doubled from the level of 63 per cent in 2007. Debt increased substantially following the financial crisis of 2008, and then further as a result of the pandemic. In absolute terms, government debt has crossed $33 trillion and the size of the US government bond market (or debt held by