US national debt surpasses $35 trillion for the first time
What's the story
The United States's gross national debt has surpassed $35 trillion for the first time in history, according to data released by the US Treasury Department. The total public debt of the country now stands at a staggering $35,001,278,179,208.67. This significant increase comes just six months after the national debt exceeded $34 trillion in January this year.
Borrowing adjustment
US Treasury revises federal borrowing estimate
The US Treasury has revised its estimate for federal borrowing for the current quarter and anticipates a decrease in the government's cash buffer toward year-end. In a statement released on Monday, the Treasury Department revealed that it now estimates net borrowing of $740 billion for July through September. This figure is down from a previous prediction of $847 billion made on April 29.
Debt management
Federal Reserve's decision impacts government's debt selling
The Federal Reserve's decision to begin slowing down its holdings of Treasuries has reduced the government's need to sell more debt to the public, according to the Treasury's statement. This plan was not in place when the Treasury released its previous borrowing estimate. At the end of June, the Treasury's cash balance stood at approximately $778 billion, exceeding their target of $750 billion set at April's end.
Fiscal outlook
US Treasury's year-end cash balance projections
The estimated cash balance for the end of September remains at $850 billion as per authorities. The Treasury also projected a year-end cash balance of $700 billion, a forecast that will be closely monitored due to its potential implications for any upcoming debt-limit battle. As of last Thursday, this stockpile was around $768 billion.