Amid the federal government shutdown, U.S. gross national debt surpassed $38 trillion as per Treasury data on Wednesday, raising concerns about the nation’s financial stability.
US Debt Grows At Twice The Pace Since 2000
This is the fastest trillion-dollar increase in debt outside of the COVID-19 pandemic. National debt reached $37 trillion in August 2025, after hitting $34 trillion in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024.
Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, told Fortune, "If it seems like we are adding debt faster than ever, that's because we are. We passed $37 trillion just two months ago, and the pace we're on is twice as fast as the rate of growth since 2000."
See Also: Galaxy CEO Mike Novogratz Says Bitcoin Is One Trump Move Away From Exploding Past $125,000
‘Dangerous Inflection Point’ Warns Dalio
The Government Accountability Office has previously detailed how growing federal debt can affect Americans — from higher borrowing costs on mortgages and car loans to lower wages and increased prices for everyday goods and services.
Billionaire investor Ray Dalio recently warned that the U.S. federal debt was at a "very dangerous inflection point," with the nation spending 40% more than it was taking in. This, he said, was squeezing the nation’s buying power.
David Kelly, the chief global strategist at J.P. Morgan Asset Management, also cautioned that the U.S. is heading towards a financial crisis, with the primary issue being how the government will manage its debts. He emphasized that the issue will develop gradually over time, despite investors being aware of the debt trajectory.
Bessent Claims Deficit Progress
Still, the Trump administration insists that its policies are helping to curb government spending and will reduce the nation’s substantial deficit.
A recent analysis by Treasury Department officials revealed that the cumulative deficit from April to September totaled $468 billion, the lowest since 2019, down almost 40% from the comparable period under the Biden Administration, Treasury Secretary Scott Bessent shared on X on Wednesday.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
