The U.S. national debt has surpassed $40 trillion, while the federal budget deficit for fiscal 2026 reached nearly $2 trillion. CNBC’s Matt Peterson and Alex Harring break down what’s driving America’s growing debt, how rising Treasury yields and interest payments could affect mortgage rates and the broader economy, and whether AI-driven economic growth or action in Washington could help address the country’s fiscal challenges.
Chapters:
0:00 Introduction
1:09 What’s driving the deficit?
2:24 Cost to Americans
3:35 Economic growth
5:06 The midterms
Produced and Shot by: Charlotte Morabito
Reporters: Matt Peterson, Alex Harring
Edited by: Andrea Miller
Animation: Jason Reginato, Emily Park
Senior Managing Producer: Shawn Baldwin
Additional Footage: Getty Images
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Why The Midterms May Not Change America’s $40 Trillion Debt
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