How US Federal Debt Service Costs Hit a Record $1 Trillion

In this episode of US Economy with Fexingo, Lucas and Luna drill into a startling milestone: for the first time, annual US federal debt service costs have crossed $1 trillion. With the ten-year Treasury yield hovering near 4.5 percent and the Fed funds rate at 3.65 percent, interest on the national debt now consumes nearly a fifth of federal revenue. Lucas breaks down how rising yields on refinanced debt—especially short-term bills—are compounding faster than the GDP growth rate, while Luna questions whether the latest budget deal does enough to slow the spiral. They reference the recent 10-year breakeven inflation rate of 2.31 percent and the Fed's interest on reserve balances at 3.65 percent to show how the current rate environment locks in higher borrowing costs. The hosts also explore what this means for future fiscal flexibility, especially if a recession forces stimulus. If you've ever wondered why Washington keeps fighting over the debt ceiling, this episode explains the math behind the friction. #USDebtServiceCosts #FederalBudget #NationalDebt #TreasuryYields #FiscalPolicy #InterestRates #FedFundsRate #BreakevenInflation #GDPGrowth #DebtCeiling #USEconomy #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #FederalSpending #BondMarket #FiscalSustainability Keep every episode free: buymeacoffee.com/fexingo