FX.co ★ US federal debt hits new historic high after single-day spike

The US Federal debt has notched a new historic record at $33.442 trillion. The top global economy and the only superpower can afford humongous borrowings. Notably, the country borrows mainly in dollars which are printed by its own central bank, the Federal Reserve. This makes a perfect scheme. In a single day in October, the US public debt surged by an amount higher than the total sovereign debt of Russia. This comparison is made on the grounds of official data reported by the US Treasury Department and Russia’s Finance Ministry. The US national debt swelled by $275 billion in one day to $33.442 trillion from $33,167 trillion. Remarkably, this single-day spike is 3% bigger than the whole public debt of Russia. As of September 1, Russia’s debt was estimated at $267.3 billion. The reason behind this expansion is that the Treasury Department had to provide the US government with enough funds to fulfill its obligations to public agencies. The unpaid government’s debt to public agencies sharply increased by $266 billion and the one to individuals, businesses, and the external debt rose by $9 billion. Interestingly, Russia’s national debt has contracted by $57.1 billion since the beginning of 2023.