Overview

• The U.S. government has spent $1.049 trillion on interest payments for its $35.3 trillion national debt in the first 11 months of the fiscal year.
• Interest payments have increased by 30% compared to the same period last year, driven by high Federal Reserve benchmark rates.
• The August budget deficit was reported at $380 billion, a stark contrast to the $89 billion surplus in August 2023.
• Net interest payments, after accounting for government investment earnings, have reached $843 billion, making it the third-largest budget item after Social Security and Medicare.
• The Federal Reserve is expected to lower interest rates slightly next week, which could impact future debt service costs.