The Rising Cost of U.S. Debt
The latest numbers on U.S. debt, especially the interest payments, are alarming. As Fortune Magazine reported, the Congressional Budget Office (CBO) highlighted in its latest release that the U.S. government paid nearly $530 billion in interest between October 2025, when the fiscal year began, and March 2026. That works out to more than $88 billion per month, or over $22 billion per week.
These figures are so large they’re hard to fully grasp. $22,000 million spent on interest every single week just to service debt. Imagine what that kind of money could do if it were invested productively. What makes it more concerning is that this represents a 7% increase compared to the same period last year. The U.S. is now spending more on interest payments than it does on defense and education combined.
To me, this points to two things. First, the trajectory doesn’t look sustainable, and the risks are clearly rising. Even Jerome Powell hinted at similar concerns in a recent interview. Second, it shows how the U.S. is gradually limiting its own flexibility. With debt levels this high, the room to maneuver, economically and politically, keeps shrinking, making it increasingly important to find a way out.
Personally, I don’t hold any U.S. bonds or sovereign bonds in general because I see the risks as outweighing the returns they currently offer. What about you guys?
