Unsustainable National Debt

The national debt is on an unsustainable trajectory, with annual deficits expected to increase significantly. Current projections suggest a deficit of $1.9 trillion, which equates to 6.7% of GDP, surpassing the $290 billion deficit of 1992 that once seemed outrageous. As the Federal Reserve faces pressure to manage interest rates effectively, the implications of this escalating debt could lead to higher interest payments that may soon exceed military spending. Without significant policy changes, the future may see the U.S. surpassing World War II debt levels by 2026 or 2027.