THE current U.S. debt sits at 33.6 trillion dollars and it could hit 54 trillion dollars by 2033 due to excessive spending.
Federal deficit spiked by 320 billion dollars to 1.7 trillion dollars in 2023, forcing the US Treasury Department to auction trillions of dollars of fresh bonds.
Rising bond yields strain budgets, widening deficits. The bank warns the debt now surpasses the combined Gross Domestic Products of China, Japan, Germany, and India.
Bank of America also warned that as long as U.S. policymakers continue to borrow heavily and add to the outstanding debt of the government, investors are poised to worry about the lingering risks of inflation, bond defaults, and currency debasement.
Despite concerns, borrowing is likely to continue for economic growth.
The U.S. broke the 31.4 trillion dollar debt ceiling in 2023.
To recall, on June 3, U.S. President Joe Biden signed a debt ceiling bill that lifted the debt limit until 2025.
