The US national debt has ballooned by over half a trillion dollars in just three months.
According to the U.S. Treasury, America’s national debt jumped from $34,635,364,143,328 on June 3rd to $35,319,686,640,609 on September 3rd – a surge of $684,322,497,000.
The massive rise is coming just over a month after the US national debt crossed the $35 trillion mark.
The US credit rating giant Fitch continues to sound the alarm on the growing debt and deficit.
In a new rating action commentary, Fitch says it is affirming its long-term “AA+” rating for the US with a stable outlook due to the nation’s high per capita income, position as the largest economy in the world and dynamic business landscape.
But the agency says it is not ready to upgrade the country to the “AAA” rating due to the nation’s underlying fiscal conditions.
“The ratings are constrained by high fiscal deficits, a substantial interest burden and high government debt, all of which are more than double the ‘AA’ rating medians…
The government has failed to meaningfully tackle large fiscal deficits, the growing debt burden and looming increases in spending associated with an aging population.”
The rating giant notes that the US has a significant edge over other nations due to the dollar’s status as the world’s reserve currency. But trust in the US and the dollar may erode if the country continues to rely on debt to fund expenses.
“However, persistent rises in the public debt burden would increase vulnerability to economic and confidence shocks.”
Last year, Fitch downgraded the long-term rating for the US from the “AAA” gold standard to “AA+,” citing expected fiscal deterioration over the coming years.
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