US national debt tops $40 trillion as Fed split on rate hikes
US national debt has passed $40 trillion for the first time, while Federal Reserve minutes show policymakers divided over further interest rate rises.
The Full Story
A plain summary built from the channels that reported this story.
The US national debt has passed $40 trillion for the first time, a record that has more than doubled over the past decade. The figure, which is larger than the size of the US economy, has grown by nearly $4 trillion during President Trump's second term alone, despite Republican promises to reduce government spending.
The milestone came as the Federal Reserve released minutes from its latest meeting, showing deepening concern among policymakers about persistent inflation. Three of the 12 voting members dissented from the decision to hold interest rates steady, calling for an immediate quarter-point rise. The Fed has missed its 2% inflation target for more than five years, and households have been hit by high prices.
President Trump has publicly demanded lower interest rates, calling current levels "ridiculous" and arguing that growth does not cause inflation. He has attacked the Fed's independence. In a surprise move, the US Treasury announced an aggressive buyback of government debt to stabilise markets, as interest costs on the national debt soared.
The debt burden is now a major concern. Interest payments in the first 10 months of the fiscal year reached $963 billion, more than $200 billion above military spending. The Treasury will need to refinance nearly $10 trillion in debt this fiscal year, while the deficit is projected at around $2 trillion. Rising long-term bond yields across major economies have added to the pressure.
Economists note that the US has so far been able to service its debt because markets continue to lend, but the trajectory is seen as unsustainable by many. The combination of high debt, rising interest costs, and the cost of the Iran war has heightened worries about the government's fiscal position.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | BBC News | BBC One | BBC Two |
|---|---|---|---|
| US national debt exceeded $40 trillion, a record high. | · | ||
| Debt increased by nearly $4 trillion during President Trump's second term. | · | · | |
| Federal Reserve minutes showed some policymakers supported raising interest rates. | · | · | |
| Long-term interest rates across industrialised nations hit multi-decade highs this week. | · | · | |
| The national debt has roughly quadrupled since the financial crisis. | · | · | |
| The US debt-to-GDP ratio is now well over 100%. | · | · | |
| The US national debt more than doubled over the last decade. | · | · | |
| The US national debt was $10 trillion less two decades ago. | · | · | |
| The US Treasury announced a buyback of government debt to stabilise markets. | · | · | |
| Three Fed voters dissented from the decision to hold rates steady, calling for an immediate quarter-point hike. | · | · | |
| Trump's net approval rating is minus 31 points, down 37 points since the start of his second term, and 19 points lower than at the same point in his first term. | · | · |
Channel Perspectives
What each channel focused on, with key quotes.
This channel did not cover the debt or Fed story. Instead, it focused on President Trump's approval ratings and the upcoming midterm elections, discussing his historically low popularity and the potential impact on his presidency. The tone was analytical, using polling data to compare Trump with previous presidents.
- “Not very, not very at all. And he's getting more unpopular as we go along.”
- “He has hit a term too low.”
- “He is historically unpopular compared to a lot of the other presidents that came before him.”
BBC News focused on the record debt figure, the Federal Reserve's internal debate over rate hikes, and the political pressure from President Trump. It also highlighted the Treasury's surprise bond buyback and the rising cost of servicing the debt, including the fact that interest payments have exceeded military spending. The tone was factual and explanatory, with expert analysis.
- “The debt has more than doubled over the past decade.”
- “Three of the 12 who vote to decide on the cost of borrowing dissented from the majority decision to hold rates steady last month, calling for an immediate quarter percent hike.”
- “President Trump has angrily demanded lower interest rates and attacked the Fed's independence.”
BBC One West provided a visual explanation of the debt using charts, emphasising the scale of the $40 trillion figure and the rise in long-term interest rates across major economies. The tone was accessible, with the economics editor breaking down the implications for the UK and the global economy.
- “One measure of US national debt puts it at a staggering $40 trillion.”
- “It was only 10 trillion less than two decades ago.”
- “It's not a crisis, but it may be a structural change in the way that we see the world economy.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.