Algeria Now

US Debt Interest Becomes Second-Largest Federal Expense

· Source: Algeria Now

US Debt Interest Becomes Second-Largest Federal Expense
Photo: Photo : 颐园居 / Wikimedia Commons, CC BY-SA 4.0

The United States Treasury reported that interest on the national debt has risen to become the second-largest federal expense in six years, while the overall deficit stands at about 6% of GDP.

Treasury Secretary Scott Bessent said the government must rely on economic growth to address the budget shortfall, noting that the Trump administration prefers borrowing rather than raising taxes or cutting spending.

President Trump has pledged a $5,000 dividend for each American if Republicans gain control of the midterm Congress, a promise that adds to concerns about fiscal discipline.

Analysts warn that if the 10‑year Treasury yield climbs by one percentage point, the cost of servicing the debt could increase sharply, potentially pushing interest payments to become the top federal expense.

Further pressure on the deficit could arise from prolonged conflict in Iran or ongoing political dysfunction, both of which are identified as possible triggers for higher borrowing costs.

Algeria {{ nowMark }}
{{ svCur.catLabel }} {{ svPos }}
{{ VT.tapSnd }}
Algeria now
{{ VT.upNext }} {{ svNx.title }} Algeria Now · {{ svNx.catLabel }}
{{ VT.upNext }}{{ svNx.catLabel }} {{ svNx.title }}
{{ svNx.pos }}{{ svNx.title }}
{{ VT.swipe }}
{{ VT.nowPlaying }}{{ svCur.title }}

{{ svCur.title }}

{{ svCur.meta }}
{{ t.trend }}
{{ t.breaking }} {{ brk.title }}
{{ t.live }} {{ tickerTitle }} {{ ticker.ago }}
{{ SB.label }}
{{ SB.label }}
{{ liveTick }}
{{ t.home }} {{ art.catLabel }}

{{ art.title }}
{{ art.dateLabel }}
{{ t.loadingArt }}{{ artPctLabel }}

{{ p.text }}

{{ t.noBody }}
{{ t.source }} : {{ art.source }} {{ art.dateLabel }}

{{ searchTitle }}

{{ sr.countLabel }}
{{ it.title }} {{ it.snip }} {{ it.meta }}

{{ sr.msg }}

{{ g.label }}

{{ g.n }}

{{ t.loginTitle }}

{{ t.loginErr }}

{{ t.archives }}

{{ t.advSearch }}

{{ ar.countLabel }} {{ it.title }} {{ it.snip }} {{ it.meta }}

{{ ar.msg }}

{{ t.archOff }}

{{ t.loading }}

{{ stT.row }}

{{ VT.videos }}

{{ svAllLabel }} ›
{{ SB.label }}

{{ t.scores }}

{{ spUpdated }}

{{ t.results }}

{{ mt.home.name }} {{ mt.score }}{{ mt.when }} {{ mt.away.name }}
{{ mt.evH }}{{ mt.evA }}

{{ t.upcoming }}

{{ mt.home.name }} {{ mt.score }}{{ mt.when }} {{ mt.away.name }}

{{ t.table }}

#{{ t.cols.p }}{{ t.cols.gd }}{{ t.cols.pts }}
{{ r.pos }} {{ r.name }} {{ r.played }} {{ r.gdLabel }} {{ r.pts }}

{{ st.scorers }}

{{ s.rank }} {{ s.name }}{{ s.team }} {{ s.goals }}
{{ lg.scorersMsg }}

{{ sportMsg }}

{{ VT.sport }}

{{ svSpCount }}

{{ t.feed }}

{{ catListTitle }}

{{ cl.countLabel }}
{{ it.title }} {{ it.snip }} {{ it.meta }}

{{ cl.msg }}

{{ t.empty }}
Algeria {{ t.now }}
{{ t.rights }}
Dégradé de la une