Quarterly Update on the Ugly Fiscal Condition of the US in Q2 2026
US government interest payments, tax receipts, average interest rate on the $40 trillion Treasury debt, Debt-to-GDP Ratio, Deficit-to-GDP Ratio...
Source: Wolf Street
―
DW NOTE
The US paid $1.1 trillion in interest on the debt in fiscal 2025 at an average rate of 3.3%. The debt is now $40 trillion. If the average rate rises to match the current 10-year at 4.64%, interest expense alone exceeds $1.8 trillion — more than the entire discretionary budget. And rates are staying elevated because the Fed cannot cut without reigniting inflation that only just reached target after two years of tightening.