The U.S. Government Raises Debt Ceiling to Historic Heights

Key Points

1. The U.S. national debt increased by $384.7 billion in the first week of July, reaching an all-time high.

2. Congress passed a spending law that raised the debt ceiling by $5 trillion, setting it at $41.1 trillion, the largest single increase in U.S. history.

3. The new legislation extends the 2017 tax cuts indefinitely, which could reduce federal revenue.

4. The Congressional Budget Office (CBO) projects that the new budget law will not be fully offset by spending restrictions but may accelerate economic growth.

5. Economists warn that the rapid rise in borrowing levels could increase volatility and risk in financial markets.