US National Debt Tops 40 Trillion Dollars for the First Time
The US national debt has surpassed 40 trillion dollars for the first time, according to data reported in September 2026. Inflation remains above the Federal Reserve's 2 percent target despite a brief dip in June. Rising energy prices tied to Middle East tensions have added pressure to household budgets.
The US national debt has crossed 40 trillion dollars for the first time, a milestone reported in September 2026 as inflation remains stubbornly above the Federal Reserve's 2 percent target.
Consumer prices fell 0.4 percent in June, the largest one-month drop since April 2020. But prices overall were still 3.5 percent higher than a year earlier, down from 4.2 percent in May. The Federal Reserve voted to leave the Federal Funds Rate unchanged at its July 29 meeting.
The brief relief at the gas pump did not last. Gasoline prices bottomed near $3.78 a gallon in early July and climbed to $4.00 by July 20, according to the Energy Information Administration. That left pump prices 88 cents higher than a year ago.
Behind the reversal is an escalating standoff over the Strait of Hormuz, which carries roughly 20 percent of the world's energy supplies. The US reimposed a naval blockade of Iranian ports in mid-July, and Iran has since threatened to close other export routes.
Mortgage rates have held near elevated levels. Freddie Mac's weekly survey put the 30-year fixed-rate mortgage at 6.74 percent as of September 2, reflecting a 15-basis-point increase in a single day tied to renewed Middle East tensions. The 10-year Treasury yield, which influences mortgage rates, has risen roughly 0.7 percent since late February to around 4.7 percent.
For savers, the environment offers some benefit. Top CD yields for September 2026 reach up to 4.35 percent APY. High-yield savings accounts are offering approximately 4.10 percent APY from major partners.
