US Fiscal Alarm: Record $1.05T Interest Bill, $2T Deficit, 6.3% PPI
The US paid a record $1.05 trillion in net interest on debt in FY2026 while running a $2T deficit, as producer prices surged 6.3% year-over-year — stoking concern that inflation is nowhere near the Fed's 2% target.
What we know
FirstSquawk flagged the US paid a record $1.05T in net interest on debt in FY2026. Charlie Bilello noted the government took in $5.4T and spent $7.4T, and separately that PPI rose 6.3% over the last year, calling 2% inflation "a myth" and saying the Fed has "lost all credibility." Retail investors meanwhile bought $9.1B in US equities last week, their largest weekly purchase in 16 weeks, suggesting consumers are still risk-on despite the macro backdrop.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.