<div id="readability-page-1">Debt exceeds economy: In early 2026, U.S. debt surpassed the nation’s annual economic output, marking a rare peacetime breach of the 100% debt-to-GDP threshold. Interest payments climb: With average rates above 3.3%, federal interest spending now exceeds many domestic program budgets, squeezing fiscal space. Risks of inaction: Analysts warn that without policy shifts, debt could surpass World War II’s record within years and reach 150% of GDP by mid-century.</div>

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<p>In early 2026, U.S. debt exceeded its annual economic output, breaching the 100% debt-to-GDP threshold. With average interest rates above 3.3%, federal interest payments now surpass many domestic program budgets, limiting fiscal flexibility. Analysts caution that without policy changes, debt could exceed World War II levels within years, potentially reaching 150% of GDP by mid-century.</p>

- In early 2026, U.S. debt exceeded the nation's annual economic output, crossing the 100% debt-to-GDP threshold during peacetime.  
- Federal interest spending now surpasses many domestic program budgets due to average rates above 3.3%, limiting fiscal flexibility.  
- Analysts caution that without policy changes, debt could exceed World War II's record within a few years, potentially reaching 150% of GDP by mid-century.

iShares Barclays Short Treasury

US debt tops GDP as interest costs surpass key programs