debt has reached its highest level compared to the size of the economy since World War II and is projected to exceed it next year, the result of a giant fiscal response to the coronavirus pandemic. That would put the U.S. in the company of a handful of nations with debt loads that exceed their economies, including Japan, Italy and Greece. This year the ratio is expected to be 98%, also the highest since World War II. The surge in borrowing so far isn’t creating angst among investors or hampering the U.S.’s ability to borrow more. Moreover, interest rates are expected to remain low, suggesting the government still has plenty of room to borrow.

Source: Wall Street Journal September 02, 2020 12:56 UTC