US national debt surpasses $31 trillion

America’s gross national debt has surpassed $31 trillion for the first time.

The figure was revealed in a Treasury Department report released Tuesday and comes at a time when the economy faces inflation and higher interest rates. During the COVID-19 pandemic, the government borrowed more money to support the economy as lockdowns disrupted labor markets and supply chains.

The costs of borrowing remain higher, and with economists warning of an impending recession, the milestone comes at an inopportune and volatile moment. A Wall Street sell-off from all-time highs in January has been driven by recession fears, though markets made gains Monday and Tuesday following a brutal September.

While President Joe Biden has touted his administration’s deficit reduction efforts this year and recently signed the so-called Inflation Reduction Act, which attempts to tame 40-year high price increases caused by a variety of economic factors, economists say the latest debt numbers are a cause for concern.