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US $34 trillion national debt is ‘boiling frog’ scenario for economy


Jan. 8, 2024, 1:13 p.m. ET

The country’s soaring national debt — which recently surpassed a record-high $34 trillion — is akin to a “boiling frog” for the economy and Wall Street investors, a senior analyst at JPMorgan Chase warned.

Michael Cembalest, who runs JPMorgan’s market and investment strategy unit in the bank’s asset management division, predicted dire consequences for the economy if the Biden administration doesn’t start tackling the debt.

Cembalest wrote in a newsletter published last week by JPMorgan that the country cannot sustain higher deficits and ballooning net interest payments, which are soon expected to exceed the federal government’s total revenue by early next decade.

“The problem for the US is the starting point; every round of fiscal stimulus brings the…

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