Key facts
- Interest payments on the U.S. national debt are projected to reach $1 trillion in 2026.
- Interest payments on the U.S. national debt are projected to reach $2.1 trillion by 2036.
- U.S. borrowing costs are nearing all-time highs relative to GDP and federal revenues.
- Brazil's Treasury is increasing its reliance on floating-rate debt.
- Brazil's floating-rate debt is tied to the benchmark Selic interest rate.
- Investors are shunning longer-dated securities due to global volatility and fiscal concerns.
- Brazil's shift leaves its economy more exposed to high borrowing costs.
Interest payments on the U.S. national debt are on track to reach $1 trillion by 2026 and $2.1 trillion by 2036, marking a significant increase driven by both rising debt levels and higher interest rates. These projected costs are approaching all-time highs when measured against the Gross Domestic Product (GDP) and federal revenues. This escalation in borrowing costs poses a threat to the federal budget, potentially crowding out funding for other essential priorities.