Soaring debt and deficits causing worry about threats to the economy and markets

The U.S. federal debt has surged to $34.5 trillion, a near 50% increase since March 2020, raising significant concerns among financial and government leaders. The debt-to-GDP ratio has exceeded 120%, with projections suggesting it could rise further, potentially impacting economic stability and market conditions. Federal Reserve Chair Jerome Powell and others are urging immediate attention to this escalating fiscal challenge, emphasizing the urgency of addressing structural deficits to prevent adverse consequences on the economy and financial markets.