U.S. Debt, Inflation, and Federal Reserve Policies: Key Economic Indicators and Strategies

What is the current U.S. national debt?

About $37.5 trillion.

What was the average interest rate on U.S. debt in Dec 2024, and what is it now (Aug 2025)?

Dec 2024: ~3.23%; Aug 2025: ~3.415%.

What global belief exists about debt-to-GDP ratios exceeding 77%?

Sustained debt/GDP >77% hurts the economy and jeopardizes funding for programs like Social Security.

What is the current U.S. debt-to-GDP ratio?

About 120-123%.

What is the EU debt-to-GDP guideline for member countries?

Maintain ≤60%.

What was peak U.S. inflation in 2022, and what was the yearly average?

Peaked at 9.1% (highest since 1981); averaged 8% for 2022.

What does "firing the gun" mean in Fed policy?

Lowering interest rates to fight a recession.

What does "loading the gun" mean in Fed policy?

Raising interest rates.

What did the Fed do with rates during the 2008-09 Financial Crisis?

Lowered Fed Funds to 0-0.25% and held there for 7 years before raising again.

What were July 2025 inflation rates?

Overall 2.7%; Core 3.1% (ex-food/energy).

What were Aug 2025 inflation rates?

Overall 2.9%; Core 3.1%.

What were July and Aug 2025 unemployment rates?

July 4.1%; August 4.3%.

What is Ferguson's Law?

A great power risks decline if debt service costs exceed military spending.

What share of global government debt did the U.S. hold as of Dec 2024?

34.6%.

According to the Penn Wharton Budget Model, how long does the U.S. have to fix debt issues before default becomes inevitable?

About 20 years.

What are strategies to reduce U.S. debt?

Increase tax revenue, reduce spending, grow the economy, fix unfunded liabilities (raise retirement age, increase payroll tax, expand earnings cap).

What was the U.S. trade balance post-WWII vs. since 1975?

25 years of surpluses after WWII; trade deficits every year since 1975.

How many rounds of quantitative easing did the Fed use after 2008-09?

Three rounds.