Economists have criticized politicians’ plans to reduce America’s national debt as too little, too late. But analysts are warning that the issue is now coming home to roost, with the once unshakeable confidence in the United States’ fiscal future beginning to erode.

America’s national debt, which currently stands at more than $36.2 trillion, is increasingly rising on economists’ agendas. Their fear is that as the nation’s debt burden increases, alongside the interest payments to service the debt, the economy will not grow fast enough to sustain the spending.

Such fears were reflected in a Moody’s downgrade of U.S. credit last week from Aaa to Aa1. Moody’s justified: “While we recognize the US’ significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics.”

U.S. economy is experiencing ‘death by a thousand cuts’, says Deutsche Bank

Deutsche Bank’s Jim Reid says Moody’s recent debt downgrade continues a drip of bad fiscal news for the American economic outlook.

https://fortune.com/2025/05/20/us-economy-experiencing-death-by-thousand-cuts-deutsche-bank

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U.S. economy is experiencing ‘death by a thousand cuts’, says Deutsche Bank, as confidence in national debt management erodes

https://www.msn.com/en-us/money/markets/u-s-economy-is-experiencing-death-by-a-thousand-cuts-says-deutsche-bank-as-confidence-in-national-debt-management-erodes/ar-AA1F7C7n