"US Debt Surge Alarms Investors Amid Election Concerns"

Bond investors are increasingly concerned about the growing U.S. federal budget deficit, projected to rise from $1.6 trillion in 2024 to $2.6 trillion by 2034, and its impact on the Treasury market. Despite reassurances that a debt crisis isn't imminent, shifts in demand for U.S. bonds and the Federal Reserve's reduction in bond holdings are causing some investors to favor short-term debt. The high interest rate environment has led to federal interest payments surpassing spending on defense and Medicare.