U.S. Debt Tops 100% of GDP as Spending Marches On
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- U.S. federal debt held by the public has now exceeded 100% of GDP, crossing what the Dealbook column calls a symbolic fiscal threshold.
- Washington lawmakers appear unfazed, continuing to push for higher spending on defense and immigration enforcement despite the milestone.
- Proposed budgets keep increasing defense spending while sidestepping entitlement reforms, per the Dealbook column.
- The absence of an immediate crisis is letting policymakers defer tax hikes or spending cuts, according to the source.
- Rising debt levels are stoking concerns about upward pressure on Treasury yields, which the source warns could raise borrowing costs and pressure equities and real estate.
Why it matters: For bondholders and equity investors, the concern is tomorrow's bill: the Dealbook column flags that rising debt could push Treasury yields higher, raising borrowing costs across the economy. Meanwhile, proposed budgets raise defense spending and skip entitlement reforms — the moves that would actually bend the curve.
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