00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. government debt reached $40 trillion in August, raising concerns about the country's
00:07fiscal outlook ahead of the November midterm elections, according to Reuters. The Treasury
00:13reported a nearly $2 trillion deficit for fiscal 2026, up 12% from the previous year and the
00:19largest since the pandemic. Debt servicing costs reached a record $1.36 trillion, while the deficit
00:26equaled 6.2% of the economy. Economists disagree on the risks of rising U.S. debt. While a default
00:34is highly unlikely, Federal Reserve officials warn of a potential reckoning shaped by economic growth
00:39and fiscal policy. Analysts say financial markets have not shown alarming signs of deteriorating U.S.
00:46credit quality, but rising borrowing costs remain a concern. The Trump administration maintains that
00:52economic growth and tariffs will help address the debt. For all things money, visit Benzinga.com.
