From BigGo Finance · BigGo Finance · · 1m 30s
US Fiscal Deficit Surpasses $1 Trillion
US federal interest costs hit $1.05 trillion for first time in history.
In brief
US federal interest costs hit $1.05 trillion for first time in history. US federal interest costs reached $1.05 trillion in fiscal year 2026, the first time ever exceeding $1 trillion. Originally reported by BigGo Finance.
US Fiscal Deficit Deepens
US federal government's net interest costs for fiscal year 2026 reached $1.05 trillion.
Annual Interest Costs Surpass $1 Trillion
This marks the first time in history that annual interest costs exceeded $1 trillion.
8% Increase from Prior Year
Net interest costs rose more than 8% from $970 billion in the previous fiscal year.
GDP Ratio Hits 3.2%
The cost reached 3.2% of gross domestic product, breaking the 1991 record.
Public Debt Exceeds $32 Trillion
Public debt, excluding government internal holdings, has surpassed $32 trillion.
Interest Rates Double in Five Years
The average rate on marketable Treasuries more than doubled from 1.47% to 3.52% in five years.
Interest Spending Ranks Third
Interest spending now accounts for the third-largest share of federal expenditures.
Vicious Cycle Warning
Experts warn of a vicious cycle where rising debt and rates feed on each other.
Bret Loper's Warning
Bret Loper said the problem is getting worse and action is needed now.
Federal Reserve Rate Hikes Expected
Markets expect the Federal Reserve to raise its benchmark rate at least once more this year.
The essence
US federal interest costs reached $1.05 trillion in fiscal year 2026, the first time ever exceeding $1 trillion.
