The rapidly rising US national debt is currently causing significant concern in the global financial markets. Within roughly a decade, the US debt has more than doubled from 18.2 trillion dollars in 2015 to currently about 36.6 trillion dollars. This development is further accelerated by the recently passed budget law “One Big Beautiful Bill,” which could, according to estimates, increase the debt by an additional three to 3.4 trillion dollars by 2034.
Interest Burden and Consequences
The interest burden for this debt is also increasing sharply: For the year 2025, interest payments of about 794 billion dollars are expected; in the long term, they could even exceed one trillion dollars per year. This places additional strain on the US budget and increases financing costs.
This fiscal development is causing growing nervousness among financial institutions and economists. For example, Goldman Sachs warns of an “unsustainable position” of US fiscal policy in the face of a budget deficit of five to six percent of gross domestic product (GDP). Credit rating agency Moody’s already downgraded the US credit rating in May 2025 – from Aaa to Aa1 – citing a lack of political consensus on deficit reduction and persistently high national debt. This downgrade could lead investors to demand higher yields for US government bonds, which in turn would further increase costs for the state.
Global Impacts
On an international level, this uncertainty negatively impacts: the yields on American government bonds have risen, while the US dollar has lost value against other currencies. The dwindling confidence in the fiscal stability of the United States thus indirectly influences global capital markets and investor sentiment worldwide.
In summary, it can be said:
- US debt has more than doubled since 2015 and currently stands at approx. 36.6 trillion USD.
- The new budget law will significantly increase the debt further.
- Interest costs are rising rapidly, with forecasts suggesting an annual burden close to or exceeding one trillion USD.
- Credit rating agencies are lowering creditworthiness due to a lack of political action on deficit control.
- Global financial markets are reacting with increased volatility: rising bond yields and a weaker US dollar.
- Experts warn of long-term risks for economic stability both in the US and globally.
These factors create growing concern regarding the sustainability of US fiscal policy and what impact this may have on international capital flows and market conditions.