Federal Debt

Federal debt is the total amount of money that the federal government owes, either to its investors or to itself, paid with interest to the lender. The federal government borrows money from the public by issuing securities, bills, notes, and bonds to pay its investors —both domestic and foreign. These securities also sell to corporations, financial institutions, and other governments around the world. Moderate increases in the debt will boost economic growth. But too much debt increases growth too fast.