U.S. National Debt, Economic Indicators, and Fiscal Policy (2024-2025)

What is the current national debt of the United States?

$37.5 trillion

What was the average interest rate on U.S. debt as of December 2024?

About 3.23%

What is the U.S. debt-to-GDP ratio as of now?

About 120 to 123%

What is the guideline debt-to-GDP ratio for a country to be in the European Union?

At or below 60%

What was the peak inflation rate in 2022?

9.1 percent

What does 'firing the gun' refer to in economic terms?

Reducing the interest rate to fight a recession

What was the Fed Funds rate range during the Financial Crisis?

0% to 0.25%

What was the overall inflation rate for July 2025?

2.7% for the previous 12 months

What was the unemployment rate for August 2025?

4.3%

What does Ferguson's Law propose regarding great powers and debt?

A great power risks decline if it spends more on servicing its debt than on its military.

What percentage of the world's total government debt did the U.S. account for as of December 2024?

34.6%

According to the Penn Wharton Budget Model, how long does the U.S. have to take corrective action to avoid government default?

Around 20 years

What are the primary strategies suggested to get the U.S. out of debt?

Increased tax revenue, reduced government spending, and/or economic growth.

What are some proposed fixes for the unfunded liabilities of Social Security and Medicare?

Raise the retirement age, increase payroll tax, and expand the taxable earnings cap.

What trend has the U.S. experienced in trade balances since 1975?

Trade deficits every year since 1975.

How many rounds of quantitative easing did the Fed use after the Great Recession?

Three rounds

What was the core inflation rate (excluding food and energy) for August 2025?

3.1%