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The U.S. government has surpassed $1 trillion in interest payments on its $35.3 trillion national debt this year, marking a significant milestone, as reported by the Treasury Department. With the Federal Reserve maintaining benchmark rates at their highest in 23 years, debt service costs have reached $1.049 trillion, a 30% increase from the previous year. Net interest payments, excluding government investments, have totaled $843 billion, ranking second only to Social Security and Medicare expenditures.
The surge in debt service expenses coincided with a notable increase in the budget deficit in August, nearing $2 trillion for the full year. The deficit for 2024 stands at nearly $1.9 trillion, marking a 24% rise compared to the same period last year. As anticipation grows for potential rate cuts by the Fed, Treasury yields have declined, with the 10-year note now yielding around 3.7%, a significant decrease from early July.
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Lucas Bennett, completed his Finance degree at Bocconi University in Italy in 2018. He is highly skilled in corporate finance and risk management, beginning his career at a hedge fund in Milan. Lucas expertise extends to consulting for leading European firms, particularly within the energy markets sector. His analytical skills and strategic mindset have made him a sought-after consultant, and he continues to explore new opportunities within the financial services industry across Europe.
