The brief update points to a new peak in the government debt-to-GDP ratio, a closely watched measure of sovereign debt relative to economic output.
U.S. gross federal debt has risen above 120% of GDP, marking the highest level on record. The debt-to-GDP ratio compares total government debt with the size of the economy and is widely used to gauge a country's fiscal burden and borrowing capacity. The update signals that federal debt has grown faster than economic output, putting renewed focus on fiscal sustainability, interest costs and Treasury supply.