A New Milestone for U.S. Debt: $40 Trillion

On Wednesday, U.S. debt crossed $40 trillion for the first time, a milestone that economists say underscores an unsustainable fiscal trajectory, even if it doesn’t immediately hamstring the government. That story anchors a news roundup that also covers Moderna’s breakthrough cancer vaccine trial, a new FTC warning about personalized pricing, and a handful of other market and political developments.

U.S. Debt Hits $40 Trillion: Symbol of a Longer-Term Problem

The national debt has surpassed $40 trillion, a figure that WSJ markets reporter Matt Grossman described as a "huge and historic debt burden." On a day-to-day level, the milestone doesn’t prevent the Treasury from borrowing money to fund government salaries or Medicare payments. There remains a deep pool of investors willing to buy U.S. bonds, which keeps an "imminent fiscal crisis at bay." The concern is directional: the U.S. is not only carrying this much debt but is "still on the wrong course," adding more each year. Economists are increasingly forced to reckon with how the situation will resolve itself "in the years ahead and the decades ahead." Separately, the Treasury Department announced it would at least double its repurchases of longer-dated bonds, a move that sent the 30-year Treasury yield sliding after it hit its highest level in 19 years. The major stock indexes each gained about 0.2% on the day.