The U.S. debt tops a record-shattering $40 trillion. Yes, with a T.

The U.S. federal debt has surpassed $40 trillion for the first time, driven by the government's rapid deficit spending. This historic debt level is causing investors to worry about fiscal sustainability, leading them to demand higher interest rates on government borrowing. As a result, these increased rates are pushing up borrowing costs across the entire economy for businesses and consumers.