US interest costs hit record $1.36 trillion
As borrowing costs for the US federal government continue to rise rapidly, interest expenses reached a record $1.36 trillion in fiscal year 2026.
According to a Reuters analysis published on October 19, growing government debt and elevated bond yields are intensifying pressure on the federal budget.
Total US federal debt reached $40 trillion in August, while the budget deficit stood at approximately $2 trillion. Rising yields in global bond markets are affecting not only government finances but also borrowing conditions for businesses and households.
The increase in US 30-year mortgage rates to 7.40% highlights how elevated financing costs are being passed on to consumers. Experts warn that unless budget deficits are reduced on a sustained basis, interest expenses could place an increasingly heavy burden on public finances.
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