FX.co ★ US national debt crosses $33 trillion mark

Bigger does not always mean better, especially when it comes to debts. A new record recently set by the US is a good example of this. The US national debt has reached a historic milestone, surpassing $33 trillion for the first time ever. Yet, it seems that the US administration is fine with the way things are. Apparently, the bloated government debt is mainly perceived as a reputational problem rather than a financial one. For the reference, during his campaign trail, Joe Biden pledged to cut the federal deficit by $1 trillion over the next decade. However, since the start of his term, the national debt has increased by almost $8 trillion. In June this year, Joe Biden passed legislation that suspends the nation’s debt limit until January 1, 2025, in an effort to avoid default. After days of contentious negotiations, Democrats and Republicans finally reached a compromise implying a reduction of federal spending for the next two years. Notably, over $24 trillion of the US public debt is owned by private holders, while nearly $7 trillion belongs to foreign governments.