US Racks Up $652 Billion in Debt Costs as Rates Hit 11-Year High

  • Higher interest rates mean bigger debt servicing costs
  • US budget gap widens 170% in first nine months of year

For the nine months through June, the federal deficit hit $1.39 trillion, up some 170% from the same period the year before.

Photographer: Andrew Harrer/Bloomberg

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The cost of servicing US government debt jumped by 25% in the first nine months of the fiscal year, reaching $652 billion and contributing to a major widening in the budget deficit.

For the nine months through June, the federal deficit hit $1.39 trillion, up some 170% from the same period the year before, according to Treasury Department data released on Thursday.