The U.S. national debt has reached $36.9 trillion, sparking growing concerns about its impact on the economy and average Americans. While the federal deficit may seem distant from daily life, its effects are already being felt—through higher mortgage rates, rising inflation, and long-term threats to job growth and retirement savings. Federal borrowing plays a key role in influencing interest rates. As the government borrows more to cover its expenses, it competes with the private sector for capital.