Sun Sep 15 16:11:21 UTC 2024: ## US Spending $3 Billion Daily on Interest Payments: National Debt Costs Soar

**Washington, D.C. -** The United States is spending a staggering $3 billion per day just to cover interest on the national debt, according to Torsten Sløk, chief economist at Apollo Global Management. This figure, which has doubled since the beginning of 2022, highlights the rapidly growing burden of the nation’s debt.

Citing data from the U.S. Treasury Department, Sløk reveals that net interest expense, the second-largest budgetary item after Social Security, has already reached $763 billion in fiscal year 2024. By the end of the year, interest payments are expected to reach a record-breaking $1.157 trillion.

The escalating interest payments stem from rising interest rates, a trend that is likely to continue despite potential rate cuts on the horizon. Sløk acknowledges that even a 1% reduction in interest rates would only bring daily expenses down to $2.5 billion.

Meanwhile, the national debt has reached unprecedented levels. On September 9th, it hit a new record high of $35.346 trillion, only to slightly decrease to $35.273 trillion by September 12th.

The staggering cost of servicing the national debt poses a significant challenge for policymakers, who must balance competing priorities with the growing financial burden.

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