The Treasury says the national debt climbed past $40 trillion. Short-term Treasury actions eased yields temporarily, but analysts point to rising federal borrowing as a factor pushing borrowing costs for households.
The national debt exceeded $40 trillion, up about $11 trillion in five years, and rising government borrowing can push interest rates higher for consumers.
Treasury Secretary Scott Bessent used longer-term debt buybacks to calm rising yields, and the Treasury flagged tariff revenue and possible continued buybacks as offsets.
# What's happening with the national debt — and how it could affect your wallet
The US national debt recently surpassed $40 trillion. For most people, that number is hard to picture, but its movement has real effects on borrowing costs that touch mortgages, auto loans, and other consumer credit.
The Treasury reported the total debt crossed $40 trillion, an increase of more than $11 trillion over the last five years. Rising federal debt changes how investors price US government bonds. When investors demand higher yields to hold Treasury debt, those yields influence interest rates across the economy, including rates charged by banks and lenders to households.
Treasury Secretary Scott Bessent acted to calm rising yields after the 30-year US Treasury yield reached levels not seen since June 2007. The Treasury expanded buybacks of longer-term federal debt to reduce supply in the market and temporarily push yields down. The Treasury also said new tariff revenue could reduce the deficit and suggested buybacks might continue.
Buybacks provided a short-lived easing of yields, but yields rose again in days that followed. Economists and fiscal-policy analysts stress that one-off Treasury operations can modestly affect rates in the short term. Caleb Quakenbush, director of fiscal policy at the Bipartisan Policy Center, framed buybacks as only a partial, short-term tool and said long-run solutions require deficit reduction.
A Yale Budget Lab model examined the effect of federal debt growth between 2015 and 2025 on interest rates and consumer loans as of Q3 2025. Their findings: the debt growth over that period raised annual costs by about $2,500 for the median home mortgage and about $120 for the average auto loan. Abhi Gupta, who authored that analysis, noted that while $40 trillion is hard to grasp, the per-person figure is significant and contributes to higher borrowing costs across the board.
When government borrowing rises and investors demand higher yields, banks and other lenders often raise the interest rates they charge customers. That makes new mortgages and auto loans more expensive and can increase mortgage payments for buyers who take out loans at higher rates. Businesses seeking financing may also face higher costs, which can affect hiring and prices.
Crossing the $40 trillion threshold drew attention because of the scale and speed of recent debt growth. Short-term Treasury measures can temper yields for a period, but analysts point to deficit reduction as the structural fix. For consumers, rising federal debt has already been linked in research to higher annual costs on typical mortgages and auto loans.
The U.S. national debt has surpassed $40 trillion, leading the Treasury Department to expand a bond buyback program to address rising interest rates and economic concerns.
The U.S. national debt has surpassed $40 trillion, leading the Treasury Department to expand a bond buyback program to address rising interest rates and economic concerns.
There is a lot to unpack about the national debt. Here's a starter guide to what's happening with the national debt right now.
The national debt surpassed a record $40 trillion on Wednesday, a staggering milestone as defense costs, social programs like Social Security and Medicare and interest on the burgeoning deficit make up an enormous share of federal spending. The milestone figure was recorded just five months after the United States hit
Most economists assume the answer is obvious. They say the purpose of the economy is growth, and they measure success using GDP. But what if Read the full article...
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