Overview
- The Fed chair told Harvard students the $39 trillion debt is manageable now but the current trajectory will not end well without action.
- He urged primary budget balance, meaning revenues cover non‑interest spending, rather than paying the debt down outright.
- Net interest on the debt is projected to top $1 trillion in fiscal 2026, up from $345 billion in 2020, according to CBO figures reported by Fortune.
- The CBO expects debt held by the public to climb from about 101% of GDP to roughly 120% by 2036.
- Outside budget analysts said war‑related costs could push the total near $40 trillion before the fall elections, a risk they call unsustainable.