The $38.5 Trillion Warning ⚠️ | Why the Fed Is Ringing the Alarm
Federal Reserve Chair Jerome Powell has issued a stark warning:
U.S. national debt has surged to $38.5 trillion, and the current path is officially unsustainable.
As we move into 2026, the numbers are becoming impossible to ignore.
Key Facts You Need to Know
⏱️ Debt Clock:
The U.S. is adding nearly $8 billion to its debt every single day.
💸 Interest Burden:
Annual interest payments are expected to exceed $1 trillion this year —
more than the entire U.S. defense budget.
📉 The Sustainability Problem:
Powell’s biggest concern is that debt is growing faster than the economy (GDP), leaving the system exposed to future shocks.
🗣️ “We are borrowing from future generations… we are on an unsustainable fiscal path, and that’s just a statement of fact.”
— Jerome Powell
Why This Matters Now
While the Federal Reserve controls interest rates, it doesn’t control government spending — that power belongs to Congress.
With Powell’s term ending in May 2026, his final warnings underline a major challenge for the next Fed Chair:
👉 Managing an economy where debt servicing is becoming one of the largest budget expenses.
Smart money is watching closely.
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