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US net interest costs reach record $1 trillion
US government net interest costs reached $1.05 trillion for the twelve months ending in September, according to data from the US Treasury. This represents an increase of approximately 8 percent compared to the $970 billion recorded in fiscal year 2025.
The surge in costs is attributed to two primary factors: a significant increase in total debt, which exceeds $32 trillion, and rising interest rates. The average interest rate on marketable government securities stood at 3.52 percent at the end of September, a substantial rise from 1.47 percent five years prior.
The Peter G. Peterson Foundation estimates that these interest costs will eventually reach 3.2 percent of the US GDP, surpassing the previous record set in 1991. While economists note that the country is not currently in a crisis due to solid demand in bond auctions, some experts warn of a “creeping loss of fiscal maneuvering room” that could lead to financial instability if lenders eventually reduce their willingness to provide capital.
Entities
Brookings Institution · Louise Sheiner · Peter G. Peterson Foundation · Scott Bessent · US Treasury · United States Department of the Treasury
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The Peter G. Peterson Foundation estimates interest costs will reach 3.2 percent of GDP. www.cash.ch · www.bilanz.ch
- [● 2 SOURCES] The average interest rate was 1.47 percent five years prior to September. www.cash.ch · www.bilanz.ch
- [● 2 SOURCES] Total US debt exceeds $32 trillion. www.cash.ch · www.bilanz.ch
- [● 2 SOURCES] US government net interest costs reached $1.05 trillion in the twelve months ending in September. www.cash.ch · www.bilanz.ch
- [● 2 SOURCES] The average interest rate on marketable government securities was 3.52 percent at the end of September. www.cash.ch · www.bilanz.ch
- [● 2 SOURCES] Net interest costs increased by approximately 8 percent compared to fiscal year 2025. www.cash.ch · www.bilanz.ch