‼️ Warning of $38.5 trillion: Why the Fed is sounding the alarm ‼️
Federal Reserve Chairman Jerome Powell issued a clear reminder: the national debt of the USA has reached $38.5 trillion, and the current trajectory is officially "unsustainable." As we begin the year 2026, the math becomes increasingly difficult to ignore.
Quick Facts
Debt Clock: The USA is currently adding approximately $8 billion to the national debt every day.
Interest Trap: Annual interest payments are expected to exceed $1 trillion this year – meaning the USA is now spending more on interest than on its entire national defense budget.
"Sustainability" Gap: Powell's main concern is that the debt continually outpaces the economy (GDP), making the country vulnerable to future shocks.
"We are borrowing from future generations... we are on an unsustainable fiscal path, and that is simply a statement of fact." — Jerome Powell
Why it Matters Now
Even though the Fed controls interest rates, it does not control the checkbook – that is up to Congress. With Powell's term ending in May 2026, his latest warnings highlight the enormous challenge for the next Fed chair: managing an economy where "debt service" is one of the largest items in the budget.
